Washington D.C. – Contrary to widespread belief and some official communications, federal taxes on Social Security benefits have not been eliminated, as stated by USA TODAY in a recent tweet. The publication clarified, "> Taxes on Social Security benefits were not eliminated despite what you've heard." This statement addresses public confusion following the passage of the "One Big, Beautiful Bill" in early July 2025.
The legislation, signed into law by President Donald Trump, includes provisions that offer a temporary, enhanced standard deduction for seniors. This deduction amounts to up to $6,000 for individuals aged 65 and older and $12,000 for married couples, applicable for tax years 2025 through 2028. However, this is a deduction, not a full repeal of taxation on Social Security income.
The enhanced deduction is income-based, designed to phase out for higher earners. It begins to reduce for individuals with incomes exceeding $75,000 and for married couples earning above $150,000. While the White House and the Social Security Administration (SSA) initially claimed that this change would effectively mean nearly 90% of seniors would pay no tax on their Social Security benefits, tax experts and fact-checkers quickly clarified the distinction.
The SSA had sent an email to millions of beneficiaries on July 3, stating that the bill would "eliminate federal income taxes on Social Security benefits for most beneficiaries." This messaging was criticized by former SSA officials and tax policy experts for being misleading. Howard Gleckman, a senior fellow at the Tax Policy Center, emphasized that "There is no provision in the budget bill that directly 'eliminates' or even reduces taxes on Social Security benefits."
Critics also point out that a significant portion of Social Security recipients already pay no federal tax on their benefits due to existing income thresholds. Furthermore, concerns have been raised regarding the long-term financial health of the Social Security program, as the taxation of benefits contributes to its trust fund. Reducing this revenue, even indirectly through deductions, could impact the program's solvency.