Social Security Tax Break Won't Affect Richest, Poorest Seniors

President Trump has promised that the "Big Beautiful Bill" approaching a final vote in the House will "eliminate" taxes on Social Security benefits—but while many seniors are set to get a tax break if the bill passes, the truth is a little more complicated. Some 64% of seniors already don't pay income tax on Social Security benefits. Under the bill, that proportion will rise to 88%, according to the White House.

• A temporary deduction. The version of the bill passed by the Senate includes a temporary bonus tax deduction of $6,000 per person for taxpayers 65 and older, which will expire in 2028.

• Break won't affect poorest, richest seniors. The tax break in the bill won't affect the poorest seniors, who already don't pay federal income taxes, or the richest, Axios reports. The deduction starts phasing out for individuals with an income over $75,000, ending completely when an individual's income is $175,000, or $250,000 for couples.
• A "substantial tax break." Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, tells Axios that the bill delivers a "substantial tax break" for upper-middle class people who currently pay tax on Social Security benefits. The nonpartisan group says it will also move the program's insolvency up by a year to 2032.
• Seniors are split. Some seniors the Journal spoke to said they were disappointed that the bill isn't really eliminating taxes on Social Security benefits, while others said they were happy with the $6,000 deduction. "That's a pretty good deal for most of your seniors," said Frank Reuter, an 86-year-old retired aerospace engineer in Texas. "I know you start with your best shot and come down to reality."