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Update on the “You Earned It, You Keep It” Initiative - Realtor.com
As many seniors are aware, “You Earned It, You Keep It” legislation is alive and well in the 119th Congress. H.R. 2909 (sponsored by Rep. Angie Craig D-MN) and S. 2716 (sponsored by Sen. Reuben Gallego D-AZ) are currently winding through the process. The bills, of course, seek to repeal the inclusion in gross income of social security benefits, often referred to as “double taxation” (which, according to some research sources, it technically isn’t). For additional commentary on these legislative initiatives, check out this post from The Realtor.com Team.
As there anyway the smiling speaker of the house can be encouraged to move this bill along!
Louie:
Thanks for the question! We recently responded to a similar reader comment concerning the “You Earned It, You Keep It” Act (H.R. 2909), so I’ll just summarize that here: It is unlikely that there will be any further action on this Bill, given the temporary workaround included in the One Big Beautiful Bill Act. We anticipate that the issue will be addressed in future congressional action on the Social Security insolvency problem, and AMAC’s Social Security Guarantee proposal has included a recommendation to either totally repeal taxation of Social Security benefits or, as an alternate, adjust the thresholds for inclusion of benefits in adjusted gross income. With total depletion of financial reserves now within a six-year window, we believe a resolution is forthcoming and are doing our part in Washington to move it along. Stay tuned here for progress reports!
Gerry Hafer, Social Security Advisor
AMAC Foundation
We are pleased to have the opportunity to serve you via the AMAC Foundation’s Social Security Advisory Service, a program we offer to the public free of charge. The AMAC Foundation is a 501(3)(c) non-profit organization, operating completely on financial contributions from the public. To learn more about the Foundation and the programs we provide, or to contribute to the Foundation’s mission, visit our website: http://www.AmacFoundation.org. Also, please note that we conduct periodic surveys of people we have served to help ensure that we are providing the highest level of quality. These surveys are done via separate email contact, and are very brief. Your participation is important and much appreciated! If you prefer that we do not include you, please let us know and we’ll exclude your email address from the survey list.
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
My question is how can we best ensure that this bill passes with the back pay we should receive? Also can anyone explain to me how illegal people who broke our laws and never paid into Social Security be receiving it? Did they receive it based on age or did anyone get to benefit from the hard working law biding citizens who contributed their money into Social Security? Were there not laws in place to protect us from anyone non eligible for SS receiving it?
If there were laws, how did they get bypassed?
Liz:
The “You Earned It, You Keep It” Act (H.R. 2909) introduced by Rep. Angie Craig [D-MN-2] was introduced 04/14/2025 and referred to the Committee on Ways and Means. No further action on the Bill has been recorded as of this date. The subject, of course, has been addressed in the One Big Beautiful Bill Act signed into law last July. The workaround senior bonus income tax deduction in effect eliminated this taxation for a large percentage of seniors. This bonus deduction provision will remain in effect through the 2028 tax year, so it’s doubtful that any specific action will be taken by Congress on H.R. 2909. AMAC, in its Social Security Guarantee proposal, has included a recommendation to either totally repeal taxation of Social Security benefits or, as an alternate, adjust the thresholds for inclusion of benefits in adjusted gross income. We believe it likely that this issue will be addressed in measures associated with overall Social Security reform as the point of insolvency approaches.
On the issue of “illegal people” receiving Social Security, I would note that while there may in fact be some degree of fraud related to benefits paid by Social Security (e.g., unreported deaths) studies have proven this amounts to no more than 0.3% to 1% of the total benefits paid. With respect to illegal aliens, I would note that this is often a misconception, since payment of benefits is based on a legitimate work record. Illegal immigrants are, however, able in some areas to obtain Supplemental Security Income (SSI) benefits and other social benefits, but these are not paid from Social Security funds. Again, any benefits paid by Social Security must be associated with a valid work history.
Thanks for your questions!
Gerry Hafer, Social Security Advisor
AMAC Foundation
We are pleased to have the opportunity to serve you via the AMAC Foundation’s Social Security Advisory Service, a program we offer to the public free of charge. The AMAC Foundation is a 501(3)(c) non-profit organization, operating completely on financial contributions from the public. To learn more about the Foundation and the programs we provide, or to contribute to the Foundation’s mission, visit our website: http://www.AmacFoundation.org. Also, please note that we conduct periodic surveys of people we have served to help ensure that we are providing the highest level of quality. These surveys are done via separate email contact, and are very brief. Your participation is important and much appreciated! If you prefer that we do not include you, please let us know and we’ll exclude your email address from the survey list.
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
They to pass it.
Have done anything about yet?
Hi, the last action on this bill was: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sincerely,
EM Cook
Social Security tax threshold was $34,000 in 1984 for a married couple and has never been adjusted for inflation. If it were indexed for inflation a married couple could claim $99,000 tax free now. How would congress like it if their wages were capped at 1984 levels? They are stealing retirees’ income. The government owes all retirees who paid taxes above inflation back pay in my opinion.
Hope they pass this bill soon! Social Security COLA doesn’t appear to be keeping up with inflation.
It would be nice if they cared as much about this as they do the illegal immigrants.
its about time, maybe the bill passes before i die. lol. get tired of uncle Sam there getting a big chunk of monies i earned and was taxed on already. do they want my movie tickets to sounds like they need my money more then me.