What This Bill Does
This bill increases the amount of money people can earn while receiving Social Security benefits before their benefits get reduced. The bill raises the earnings limit to $2,500 per month (or $30,000 per year) for the year 2024, with future years adjusted based on wage inflation (changes in what workers typically earn).
Who It Affects
People who claim Social Security benefits before reaching full retirement age (the age when someone qualifies for unreduced Social Security benefits).
Key Provisions
• The monthly exempt amount (the money people can earn without losing benefits) becomes $2,500 for people not at full retirement age, for months in tax years ending after 2023 and before 2025. (Sec. 3(a))
• The bill updates how this exempt amount is adjusted in future years by referencing wage inflation adjustments already required by current law. (Sec. 3(b))
What Changes
If this becomes law, people claiming early Social Security benefits can earn up to $2,500 per month without having their monthly benefits reduced. Currently, the bill states that any benefits reduced due to excess earnings are returned to the beneficiary later through increased monthly benefits once they reach full retirement age.
Important Definitions
• Exempt amount: money someone can earn without losing Social Security benefits.
• Full retirement age: the age at which someone qualifies for unreduced Social Security benefits.
Effective Date
The changes apply to months in tax years ending after 2023. (Sec. 3(c))
I
118TH CONGRESS
1ST SESSION H. R. 1783
To amend title II of the Social Security Act to increase the monthly exempt
amount for individuals not attaining full retirement age, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 24, 2023
Mr. GROTHMAN (for himself and Mr. GOSAR) introduced the following bill;
which was referred to the Committee on Ways and Means
A BILL
To amend title II of the Social Security Act to increase
the monthly exempt amount for individuals not attaining
full retirement age, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Senior Independence
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Act of 2023’’.
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SEC. 2. PURPOSE AND FINDINGS.
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(a) PURPOSE.—The purpose of this Act is to increase
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the base exemption used by the Social Security Adminis-
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tration in determining the annual earnings limit for early
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retirees before monthly benefits are reduced. This legisla-
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tion would increase the annual earnings limitation to
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$30,000 (or $2,500 per month for less than full year cal-
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culations) for the year 2024 and adjusted for wage infla-
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tion in the following years as required by current law.
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(b) FINDINGS.—Congress finds the following:
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(1) Allowing early retirees to earn more while
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retaining their Social Security benefits will have no
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impact on the solvency of the program because,
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under current law, any reductions in benefits for ex-
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cess earnings are returned to the beneficiary after
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attaining full retirement age through increased
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monthly benefits.
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(2) Increasing the earning limit for Social Secu-
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rity beneficiaries will result in the potential for in-
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creased collection of FICA taxes used to fund the
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program.
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SEC. 3. INCREASE IN MONTHLY EXEMPT AMOUNT FOR IN-
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DIVIDUALS
NOT
ATTAINING
RETIREMENT
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AGE.
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(a) IN GENERAL.—Section 203(f)(8) of the Social
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Security Act (42 U.S.C. 403(f)(8)) is amended by adding
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at the end the following:
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‘‘(F) Notwithstanding any other provision of
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this subsection, the exempt amount which is applica-
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ble to an individual other than an individual de-
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scribed in subparagraph (D) shall be, for months in
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any taxable year ending after 2023 and before 2025,
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$2,500.’’.
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(b) CONFORMING AMENDMENTS.—Section 203(f)(8)
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of the Social Security Act (42 U.S.C. 403(f)(8)) is further
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amended—
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(1) in subparagraph (B)(ii)—
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(A) in the matter preceding subclause (I),
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by striking ‘‘the taxable year ending after 1993
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and before 1995’’ and inserting ‘‘the taxable
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year ending after 2023 and before 2025’’; and
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(B) in subclause (II), by striking ‘‘1992’’
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and inserting ‘‘2022’’.
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(c) EFFECTIVE DATE.—The amendments made by
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this Act shall apply with respect to months in taxable
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years ending in any calendar year after 2023.
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Æ
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