Fairness in Social Security Act of 2021

Bill: 117-hr-1161
Sponsor: full_name: Rep. Neguse, Joe [D-CO-2]
Introduced: 2021-02-18
Policy area: Taxation
Subjects: Income tax credits

Income tax rates

Social security and elderly assistance

Tax administration and collection, taxpayers

Wages and earnings
Latest action: action_date: 2021-02-18
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-02-18
action_desc: Introduced in House
text: <p><strong>Fairness in Social Security Act of&nbsp; 2021</strong></p> <p>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&nbsp;of the taxable year. It also waives any statute of limitation for credits or refunds resulting from this bill. </p>

tv_txt: I 117th CONGRESS 1st Session H. R. 1161 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.

1. Short title This Act may be cited as the Fairness in Social Security Act of 2021 . 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.