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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Karen
I did not appreciate the recent SSA email claiming that Trump’s OBBB eliminates federal income taxes on Social Security benefits for recipients. That statement is misleading and political and is coming from a government agency now being used to spread misinformation. The bill does not eliminate taxes on SS benefits. The bill provides only a temporary tax deduction, not a full exemption. The deduction is capped at $6,000 for individuals and $12,000 for married seniors and phases out at $75,000/$150,000 income levels. Frank Bisignano calls this a “historic step forward”. What’s historic is the politicization of an agency that has never in its history, issued statements like this. (Taken from Alt National Park Service Facebook page on 7/6/2025)
Wayne H.
All do not worry about SS, it is here to stay. We are the greatest country in the World and as long as that last no issues. Big Daddy Trump is a true American and only cares for Americans, So what is wrong with that?
Sharon J.
I’m happy to see we are moving forward with process improvements! We can’t forget that SSDI has its deficiencies Irelying on the Affordable Care Act (ACA)—particularly those who receive Social Security Disability Insurance (SSDI) or experience sudden income changes from lump-sum payments.
Under current federal tax law (IRC § 36B(d)(2)), individuals who received advance premium tax credits (APTC) must repay them if their annual income exceeds 400% of the federal poverty level—without protection for one-time income spikes like SSDI backpay. This rule can unfairly penalize individuals whose actual monthly incomes remain low, resulting in surprise tax bills and hardship.
We need to:
• Advocate publicly for amending § 36B(d)(2) to exclude SSDI lump sums from annual income, allow monthly averaging, and maintain repayment caps;
• Encourage Congressional delegation to champion this reform;
• Explore ways to support these unexpected repayment obligations.
Bev
Does this our monthly social security will be more since they won’t be taking taxes out. I heard different stories about this. I just want to know my check will be more each month. Can you give me an idea of what percentage of increase will be?
Mark E.
The SSA says “The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits”. So saying 90% will NO LONGER PAY implies that those same 90% did pay, and now won’t. Total exaggeration, misleading, false message sent by our government!
John D.
I am annoyed that this official Social Security blog would be used for propoganda about the tax and expenditure bill, which has the net effect of reducing benefits to low income senior citizens (through drastic cuts to Medicaid and nutrition assistance programs), and which does NOT eliminate taxation of social security benefits. I see that the initial misinformation was partially corrected by “explaining” that a benefit nominally equivalent to ending taxation of benefits through a one time increase in the standard deduction for older Americans is included, but it is still misleading
Bryan
You people stop at nothing do you…….it wouldn’t matter if Trump approved a 1 pound gold bar to some they would still say it’s not enough or try to make it political
Dave H.
When will social security go bankrupt and no longer be able to make payments to seniors?
Gerard H.
Tkanks for your great information.
Dave H.
Hi, is the following statement true?
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. If so, does this mean, I don’t need to take voluntary deduction of 22% to pay taxes?
I see so much potential fake news undermining social security I just want of know the facts. I also see some deduction comments and also comments about the poorest losing money.
Karen
It is NOT true. The deduction is capped at $6,000 for individuals and $12,000 for married seniors. Read about the “true” details on the internet
MJ
The article is on the SSA website. Hopefully, the contents of the article are accurate. After all it’s not talking points from a politicabb 🤷🏻♂️
Joseph R.
This legislation does not protect Social Security. Instead by accelerating the timeline for the depletion of the trust fund, it endangers it.
grin n.
Put all the HOUSE and SENATE Members on SS
and it will NEVER go Broke!!
Sandra R.
If the Federal government would pay back what it’s “borrowed” from Social Security, it would be in pretty good shape.
Sandra
Does not increase payments of Social Security, it merely reduces or eliminates the tax on it, as Roosevelt promised.
You’re comparing apples to oranges.
Mollysue
It has NO affect/does not accelerate the timeline for the depletion of the SS trust fund. The taxes that were being collected on social security did not go back into/replenish that fund.
Clint C.
All Americans need to get the facts for themselves! You cannot trust the news media. They report half-truths and sometimes just plain lie. Much of the time, you are NOT being informed; your opinion is being manipulated!
Dean I.
So what is the credit for someone making $82,000 per year?