Who Will Stop Paying Taxes on Social Security Benefits?

• Congress has approved a tax deduction on Social Security benefits for people over 65.
• More than 51 million older adults will receive significant tax relief.
• Trump will sign the bill this Friday. The tax deduction will be in effect through 2028.

Congress gave the green light to the “One Big Beautiful Bill,” promoted by Donald Trump.

The law eliminates federal taxes on Social Security benefits for most retirees.

According to the Social Security Administration (SSA), the measure will benefit more than 88% of older adults. It’s expected that over 51 million people will become exempt from this tax.

How Does This Social Security Tax Deduction Work in Trump’s Bill?

• The law establishes a tax deduction of $6,000 for people over 65 with incomes up to $75,000.
• For couples filing jointly, the amount increases to $12,000 if their income does not exceed $150,000.
• If those limits are exceeded, the deduction gradually decreases. It phases out completely at incomes of $175,000 (individuals) and $250,000 (couples).

Important: the deduction is not permanent. It is valid through 2028 unless Congress extends it.

Direct Social Security Tax Relief: How Does It Benefit You?

If you receive Social Security benefits and meet the requirements, you will stop paying taxes on those benefits. That means more money in your pocket each month.

• For example: A single retiree earning $24,000 annually will be exempt, meaning they will not have to pay taxes on their SSI benefits. The same applies to a couple with a combined income of $48,000.

The tax relief could save you between $800 and $1,000 per year. That money can be used for healthcare, housing, or food.

What Authorities Are Saying

“This is a historic breakthrough for older Americans,” said Frank Bisignano, Social Security Commissioner.

The White House also praised the measure, stating that it fulfills Trump’s promise to protect retirees’ benefits.

However, analysts warn that the fiscal impact will be significant. According to the Congressional Budget Office, the deficit will increase by $3.3 trillion over 10 years.

What Comes Next After This Tax Relief?

Although the benefit is real, it’s also temporary. Starting in 2029, taxes could return if Congress does not renew the deduction.

In addition, the law includes cuts to programs such as Medicaid. This is raising concerns because it could affect low-income individuals.

The debate over how to fund such measures remains ongoing, especially given their impact on other social safety nets.

In Summary

• If you are 65 or older and receive Social Security, you will likely stop paying taxes.
• The tax deduction will be valid through 2028.
• It’s significant tax relief, but you should stay alert to future changes.