Increase in exclusion from gross income of social security benefits

(a) In general Section 86(c) of the Internal Revenue Code of 1986 is amended— (1) by striking $25,000 in paragraph (1)(A) and inserting $50,000, (2) by striking $32,000 in paragraph (1)(B) and inserting $64,000, (3) by striking $34,000 in paragraph (2)(A) and inserting $59,000, and (4) by striking $44,000 in paragraph (2)(B) and inserting $76,000. (b) Inflation adjustment Section 86(c) of such Code is amended by adding at the end the following new paragraph: (3) Inflation adjustment (A) In general In the case of any taxable year beginning after December 31, 2026, the dollar amounts in paragraphs (1)(A), (1)(B), (2)(A), and (2)(B) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding If any increase determined under subparagraph (A) is not a multiple of $100, such increase shall be rounded to nearest multiple of $100.. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.