You Earned It, You Keep It Act

The You Earned It, You Keep It Act would make Social Security benefits tax-free (by removing them from gross income), establish a $250,000 threshold above which Social Security taxes no longer apply to wages and self-employment income, and adjust Social Security benefit calculations to include earnings over $250,000. This would primarily affect high earners with incomes exceeding $250,000, particularly those with multiple employers who would have their Social Security taxes recalculated to prevent double taxation on income above the threshold. The bill would change how Social Security benefits are calculated to include higher earnings, potentially increasing benefits for higher earners who reach the $250,000 threshold. The provisions would take effect for calendar years after 2022 and taxable years beginning after December 31, 2022.