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Easier Tax Treatment for Lump-Sum Social Security Payments

This act aims to simplify how lump-sum Social Security payments, covering past periods, are treated for tax purposes. It ensures that the portion of such a payment related to years before the current tax year will not be counted as household income when determining certain tax credits. This could lead to lower taxes or increased tax credits for individuals receiving these benefits.
Key points
A portion of lump-sum Social Security payments, related to prior years, will not be included in household income.
This can lower the income used for calculating tax credits, potentially increasing the credit amount or reducing taxes owed.
The changes apply to tax years beginning after December 31, 2013, potentially allowing for tax refunds.
Taxpayers whose refund period has expired have an additional year from the act's enactment to claim a refund.
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Additional Information
Print number: 117_HR_1161
Sponsor: Rep. Neguse, Joe [D-CO-2]
Process start date: 2021-02-18
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Fairness in Social Security Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_1161.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-02-18.

What are the main provisions?

Key points include:

  • A portion of lump-sum Social Security payments, related to prior years, will not be included in household income.
  • This can lower the income used for calculating tax credits, potentially increasing the credit amount or reducing taxes owed.
  • The changes apply to tax years beginning after December 31, 2013, potentially allowing for tax refunds.
  • Taxpayers whose refund period has expired have an additional year from the act's enactment to claim a refund.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Neguse, Joe [D-CO-2].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Benefits