This Act may be cited as the Stop Penalizing Working Seniors Act.

(a) In general Section 223(b)(7) of the Internal Revenue Code of 1986 is amended by adding at the end the following: This paragraph shall not apply to any individual during any period for which the individual’s only entitlement to such benefits is an entitlement to hospital insurance benefits under part A of title XVIII of such Act pursuant to an enrollment for such hospital insurance benefits under section 226(a) of such Act.. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2024.