US SB1109

Reduces the taxable portion of Social Security old-age and survivors benefits by 10% for tax year 2026 and 20% for tax year 2027

Applies to monthly benefits under Section 202 of the Social Security Act and tier 1 railroad retirement benefits, but not to disability benefits under Section 223

Amends Section 86 of the Internal Revenue Code of 1986 to create temporary special rules effective for taxable years beginning after December 31, 2025 and before January 1, 2028

Appropriates funds from the general Treasury to the Federal Old-Age and Survivors Trust Fund, Federal Disability Insurance Trust Fund, and Medicare Hospital Insurance Trust Fund to offset revenue reductions caused by the tax cut

Introduced by Senator Ricketts on March 25, 2025 and referred to the Senate Committee on Finance