S.2716

The You Earned It, You Keep It Act amends the Internal Revenue Code to repeal the inclusion in gross income of Social Security benefits and adjusts.

The You Earned It, You Keep It Act makes significant changes to the taxation and calculation of Social Security benefits. It repeals the inclusion in gross income of Social Security benefits, meaning that these benefits will no longer be subject to federal income tax. Additionally, it modifies the Social Security Act to include earnings over $250,000 in the calculation of primary insurance amounts, ensuring that higher earnings are factored into the benefit formula. These changes apply to remuneration paid in calendar years after 2025 and taxable years beginning after December 31, 2025.