A new bill in Congress could permanently eliminate federal taxes on Social Security benefits — a change that would impact millions of retirees. The You Earn It, You Keep It Act would also strengthen the program's trust funds by requiring higher earners to contribute more.
Rep. Angie Craig (D-MN) first introduced the legislation in 2024, and Sen. Ruben Gallego (D-AZ) introduced a Senate version last week. The proposal arrives just months after President Donald Trump signed the One Big Beautiful Bill Act, which includes a provision that created a temporary tax deduction for seniors. While that measure offered some relief, it did not remove federal taxes on Social Security benefits altogether.
