Section 1 Short title
This Act may be cited as the “Stop Punishing Innocent Taxpayers Act”.
Stop Punishing Innocent Taxpayers Act
A BILL
To amend title II of the Social Security Act to prohibit recovery of certain overpayments through tax refund offsets and to prohibit the application of the earnings test with respect to child’s insurance benefits, and for other purposes.
Sec. 2 Restriction on recovery of certain overpayments
Section 204(a)(1)(A) of the Social Security Act (42 U.S.C. 404(a)(1)(A)) is amended by inserting after “section 3720A of title 31, United States Code” the following: “(except that recovery by such means of reduction in tax refunds or by any other means may not be used with respect to any payment to a person who had not attained the age of 18 at the time such payment was made)”.
Sec. 3 Restriction on application of earnings test with respect to child’s insurance benefits
In general— Section 203(f)(8) of such Act (42 U.S.C. 403(f)(8)) is amended by adding at the end the following new subparagraph:
“(F) Notwithstanding any other provision of this subsection, no deductions in benefits shall be made under subsection (b) with respect to the earnings of any individual in any month in which the individual is entitled to a child’s insurance benefit under section 202(d).”
Effective date— The amendment made by this section shall apply with respect to taxable years ending after December 31, 2015.