Social Security Retirees Just Got Good News About President Trump’s Big Beautiful Bill

• President Trump said he would eliminate taxes on Social Security benefits, but the One Big Beautiful Bill (OBBB) stops short of fulfilling that promise.

• The Senate version of the OBBB would help 33.9 million seniors, with an average increase in after-tax income of $670 per person, according to the White House.

• The White House says 88% of seniors on Social Security would pay no taxes on benefits under the Senate bill, an increase from 64% under current law.

• The $23,760 Social Security bonus most retirees completely overlook ›

President Trump on several occasions during his recent campaign vowed to end taxes on Social Security benefits. Legislation currently working its way through Congress (i.e., the One, Big, Beautiful Bill Act) is built around his policy priorities, but it stops short of fulfilling that specific promise.

Nevertheless, there is good news for retirees on Social Security. The version of the One, Big, Beautiful Bill (OBBB) that recently passed the Senate includes provisions that would increase after-tax income for millions of seniors. Read on to learn more.

The OBBB passed the House of Representatives by a single vote on May 22, and an amended version slipped through the Senate by an equally narrow margin on July 1. The bill now returns the House, where lawmakers can either approve it or make changes that would require another Senate vote.

Importantly, while budget reconciliation bills are not permitted to change Social Security, both versions of the OBBB include deductions that would help millions of seniors on Social Security. The recently passed Senate bill includes the following:

• Single seniors (aged 65 and older) can deduct $6,000 from taxable income, and married seniors filing jointly can deduct $12,000 as a couple.

• The full $6,000 per-person deduction is available to single filers with income up to $75,000 and joint filers with income up to $150,000. Beyond those levels, deductions are phased out.

Importantly, the new senior deductions would be additive with other tax breaks, including the standard deduction and existing senior deductions, as detailed below:

• Under current law, the standard deduction is $15,000 for single filers and $30,000 for joint filers. The Senate bill raises the standard deduction to $15,750 for single filers and $31,500 for joint filers.

• Under current law, seniors get an additional standard deduction of $2,000 for single filers and $3,200 for joint filers. The Senate bill leaves those existing deductions in place.