A new bill in the United States could mean bigger Social Security checks for retirees starting in 2026. The federal government already taxes a part of Social Security benefits for many people. But For seniors on fixed incomes, that can make things even more difficult financially.

The new proposal, called the You Earned It You Keep It Act, introduced in the U.S. Congress by Rep. Josh Riley, is suppose to change that. And if it passes, the bill would completely remove federal taxes on Social Security retirement benefits. This would mean that retirees would get to keep more of what they already earned after paying into the system their whole working lives.

What’s changing with this bill

Today “combined income” can be used to tax Social Security. The federal government may tax up to 85% of your benefit if your income is sufficiently high, which means that taxes take a portion of the monthly income of many middle-class retirees.

The You Earned It You Keep It Act would eliminate that tax rule starting in 2026.

There will be no more difficult calculations or having to watch your benefits decrease due to federal taxes. Instead if this, nearly 90% of Social Security recipients would see an increase in their income.

But of course, for that to happen, something else has to change too: In order to make up for the lost tax revenue, the bill would ask those who make more to contribute more to the system. At right now, Social Security payroll taxes only cover wages up to a certain amount, which is around $176,000 in 2025. The new plan would require payroll taxes to be paid by anyone earning more than $250,000. In this way, the program keeps funding while giving assistance to retirees.

Retirees have been paying for a long time

Social Security can sometimes be so much more than just “extra money” to retirees. Many rely on it as their main source of income to pay for their housing, food, and medical expenses.

The U.S congress was clear on their point of view:”Seniors paid into Social Security their entire lives. It doesn’t make any sense to tax them on the benefits they earned,” Riley said. “This common-sense bill will deliver a tax cut to seniors and strengthen Social Security for future generations,” he added.

Retirees could now be more confidently with their budgets plans. They won’t have to worry about how much goes back to the government. They will get a check that will be worth exactly what it says. And maybe is only a small increase every month, but it can be a big deal for those with limited resources.

But there’s something to have in mind; this bill only gets rid of federal benefits taxes. Social Security is still taxed in some states, and those laws will not change.

What to do next

The proposal still needs to pass the US Congress, and although many retirees may support this initiative, opponents say they are concerned about the program’s long-term costs.

If the You Earned It You Keep It Act becomes law, 2026 could be the year when retirees stop paying federal taxes on their Social Security benefits, which means bigger checks, less worries, and more freedom for seniors to spend money as they please.

But it would also mean this will be the year where people with higher incomes will have to start paying higher taxes in order to keep the balance and make that bill possible.

For now, everyone should just keep an eye on updates. If this bill passes, it could be one of the most meaningful changes to Social Security seen in decades.