Fairness in Social Security Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 1161 To amend the Internal Revenue Code of 1986 to exclude the portion of a lump-sum social security benefit payment that relates to periods prior to the taxable year from the determination of household income. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 18, 2021 Mr. NEGUSE introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to exclude the portion of a lump-sum social security benefit pay- ment that relates to periods prior to the taxable year from the determination of household income. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Fairness in Social Se- 4 curity Act of 2021’’. 5 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1161.IH H1161 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 1161 IH SEC. 2. TREATMENT OF LUMP-SUM SOCIAL SECURITY BEN- 1 EFITS IN DETERMINING HOUSEHOLD IN- 2 COME. 3 (a) IN GENERAL.—Section 36B(d)(2) of the Internal 4 Revenue Code of 1986 is amended by adding at the end 5 the following new subparagraph: 6 ‘‘(C) EXCLUSION OF PORTION OF LUMP- 7 SUM SOCIAL SECURITY BENEFITS.— 8 ‘‘(i) IN GENERAL.—The term ‘modi- 9 fied adjusted gross income’ shall not in- 10 clude so much of any lump-sum social se- 11 curity benefit payment as is attributable to 12 months ending before the beginning of the 13 taxable year. 14 ‘‘(ii) LUMP-SUM SOCIAL SECURITY 15 BENEFIT PAYMENT.—For purposes of this 16 subparagraph, the term ‘lump-sum social 17 security benefit payment’ means any pay- 18 ment of social security benefits (as defined 19 in section 86(d)(1)) which constitutes more 20 than 1 month of such benefits. 21 ‘‘(iii) ELECTION TO INCLUDE EX- 22 CLUDABLE AMOUNT.—A taxpayer may 23 elect (at such time and in such manner as 24 the Secretary may provide) to have this 25 VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1161.IH H1161 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 1161 IH subparagraph not apply for any taxable 1 year.’’. 2 (b) EFFECTIVE DATE.—The amendment made by 3 this section shall apply to taxable years beginning after 4 December 31, 2013. 5 (c) WAIVER OF STATUTE OF LIMITATION ON CREDIT 6 OR REFUND.—If the period of limitation on a credit or 7 refund resulting from the amendment made by subsection 8 (a) expires before the end of the 1-year period beginning 9 on the date of the enactment of this Act, refund or credit 10 of such overpayment (to the extent attributable to such 11 amendment) may, nevertheless, be made or allowed if 12 claim therefor is filed before the close of such 1-year pe- 13 riod. 14 Æ VerDate Sep 11 2014 17:49 Mar 13, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1161.IH H1161 pamtmann on DSKBC07HB2PROD with BILLS