Title: Fairness in Social Security Act of 2021
Policy area: Taxation

Summary:
Fairness in Social Security Act of  2021
This bill excludes from modified adjusted gross income, for income tax purposes, any lump-sum social security benefit payment (i.e., a payment of more than one month of social security benefits) that is attributable to months ending before the beginning of the taxable year. It also waives any statute of limitation for credits or refunds resulting from this bill.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1161 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 1161

To amend the Internal Revenue Code of 1986 to exclude the portion of a 
lump-sum social security benefit payment that relates to periods prior 
    to the taxable year from the determination of household income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 18, 2021

  Mr. Neguse introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude the portion of a 
lump-sum social security benefit payment that relates to periods prior 
    to the taxable year from the determination of household income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fairness in Social Security Act of 
2021''.

SEC. 2. TREATMENT OF LUMP-SUM SOCIAL SECURITY BENEFITS IN DETERMINING 
              HOUSEHOLD INCOME.

    (a) In General.--Section 36B(d)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(C) Exclusion of portion of lump-sum social 
                security benefits.--
                            ``(i) In general.--The term `modified 
                        adjusted gross income' shall not include so 
                        much of any lump-sum social security benefit 
                        payment as is attributable to months ending 
                        before the beginning of the taxable year.
                            ``(ii) Lump-sum social security benefit 
                        payment.--For purposes of this subparagraph, 
                        the term `lump-sum social security benefit 
                        payment' means any payment of social security 
                        benefits (as defined in section 86(d)(1)) which 
                        constitutes more than 1 month of such benefits.
                            ``(iii) Election to include excludable 
                        amount.--A taxpayer may elect (at such time and 
                        in such manner as the Secretary may provide) to 
                        have this subparagraph not apply for any 
                        taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.
    (c) Waiver of Statute of Limitation on Credit or Refund.--If the 
period of limitation on a credit or refund resulting from the amendment 
made by subsection (a) expires before the end of the 1-year period 
beginning on the date of the enactment of this Act, refund or credit of 
such overpayment (to the extent attributable to such amendment) may, 
nevertheless, be made or allowed if claim therefor is filed before the 
close of such 1-year period.
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