Washington, D.C. (WDNews) – Millions of seniors are about to get a major tax break due to a new provision in President Donald Trump’s One Big Beautiful Bill.
That new provision eliminates federal income taxes on Social Security benefits for nearly 90% of recipients.The Social Security Administration (SSA) hailed the legislation as a “historic step forward” in protecting older Americans’ financial security.
“This is a historic step forward for America’s seniors,” said Social Security Commissioner Frank Bisignano. “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.”
What the new law does:
- Eliminates federal taxes on Social Security benefits for the vast majority of recipients.
- Increases the standard deduction for Americans aged 65 and older.
- Ensures immediate and meaningful financial relief for retirees on fixed incomes.
The tax change is part of a broader national initiative included in the $165 billion One Big Beautiful Bill, aimed at easing financial burdens on Americans while strengthening national security, law enforcement and immigration enforcement.
The SSA says it will work closely with other federal agencies to keep beneficiaries informed on how these changes may impact their 2025 tax returns and beyond.
