Fairness in Social Security Act of 2023

This bill modifies the tax code to exclude certain lump-sum Social Security benefits from being counted toward household income for tax credit purposes. Specifically, it excludes the portion of a lump-sum payment (defined as more than one month's benefits) that relates to months before the start of the tax year. This change directly affects taxpayers receiving large Social Security payments who might otherwise see those payments reduce their eligibility for tax credits like the Premium Tax Credit. The exclusion applies automatically, though taxpayers can elect to include the amount if they choose. The bill does not change Social Security benefit amounts or eligibility rules.