Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors
Reading Time: 1 MinuteLast Updated: July 7, 2025
The Social Security Administration (SSA) is celebrating the passage of the One Big, Beautiful Bill, a landmark piece of legislation that delivers long-awaited tax relief to millions of older Americans.
The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation’s economy.
“This is a historic step forward for America’s seniors,” said Social Security Commissioner Frank Bisignano. “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”
The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. It does so by providing an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they earned.
Social Security remains committed to providing timely, accurate information to the public and will continue working closely with federal partners to ensure beneficiaries understand how this legislation may affect them.
For more information about Social Security programs and benefits, visit www.ssa.gov.
Correction Notice: This blog was updated on July 7, 2025. The second sentence of the fourth paragraph originally read, “Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned.”
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David H.
While the “One Big, Beautiful Bill” (OBBBA) provides some income tax relief to seniors by way of a limited $6,000 income tax deduction (that is also subject to income phaseouts), it DOES NOT Protect Social Security and it does NOT ensure that seniors can enjoy their current and future benefits. It actually worsens and lowers future Social Security benefits without any further legislative funding changes.
It is estimated (Source: Committee for a Responsible Federal Budget), that the OBBBA would accelerate the Social Security and Medicare fund insolvency by a year, to 2032. Upon insolvency in 2032 (this is only 7 years from now), it is estimated that Social Security beneficiaries would face an across-the-board cut of around 24%.
To put this into actual numbers, a senior receiving $2,000 per month in social security benefits could see a future reduction of $5,800 per year or $480 per month. Compare to the average income tax savings of $720 or $60 per month of tax savings. This is a net cash reduction to a senior of $420 per month or over $5,000 per year. A Significant reduction for a senior citizen on fixed income.
The OBBBA adversely impacts Social Security and Medicare mainly by reducing the revenue collected from the income taxation of Social Security benefits, which is deposited into the Social Security and Medicare trust funds.
The OBBBA does NOT include any changes to address this funding deficiency. It only exacerbates the problem by passing legislation that advances the insolvency.
Policymakers and the Social Security Administration should be pursuing Trust fund solutions to head off this insolvency outcome.
One solution is by raising or removing the cap on the Social Security wage base similar to Medicare. This solution would not impact the vast majority of wage earners, mainly high-income individuals.
While we should applaud income tax relief for our seniors and older Americans, let’s not deceive them and the public into believing their benefits and entitlements are going to be better off by way of this OBBBA legislation.
Let’s support and advocate with the Administration and Congress for Protecting Social Security and Medicare and help ensure that seniors and older Americans can better enjoy the retirement they’ve earned without worrying about whether in 7 years (or less) the Fund will have enough money to pay them their full benefits, when it is projected today, even by the Social Security Administration, that it does not!
Stewart L.
This blog suggests that there are two provisions in OBBBA that will reduce taxes for seniors. Blog states that the section 70103 Senior deduction is in addition to a provision that eliminates federal income tax on SS benefits for most beneficiaries. The combination of these two provisions will mean 90% of beneficiaries will pay no tax on their benefits. Please provide the section reference for the first provision that will make more of seniors benefits not be taxable.
Hector S.
Steaming pile of detritus
J. E.
This information is not consistent with the language in the legislation. PLEASE tell the unvarnished truth with specificity that people can understand.
Kim p.
This memo is full of misinformation. There is absolutely nothing in trump’s “billionaire beautiful bill” that eliminates taxes on social security benefits the bill does offer an enhanced credit for seniors, but this credit has nothing to do with social security benefits. .
The bill does not eliminate taxes on Social Security benefits. While it does offer a tax break through the increased standard deduction for seniors, Social Security benefits remain taxable for those with income exceeding certain thresholds. perhaps read the bill before “celebrating” next time, and it’s imperative to always fact check this administration.
Barbara D.
No taxes on Social Security was not in the bill. Where is this coming from?
David T.
God Bless America! God Bless President Trump! This should have happened years ago but nobody had the stones to do it. This is a game changer for everyone. Not having to pay federal tax on my social security will mean more money in my pocket for sure. Thanks again Mr. President
Hugh J.
fuck this bullshit propaganda
Harold N.
When will this start? How can I tell how much it will affect my monthly SS check?
sandra
It does not affect your monthly check. IF (and that is a big IF) you qualify, you will be able to take a $6,000 deduction when filing your tax return
LPH
Please do not use right wing gaslighting propaganda on a social security website. Shameful.