In yet another potentially very large win for President Trump, delivered by his Big, Beautiful Bill, it appears that the formulated tax credit for seniors on Social Security is just the right amount to ensure that his “No Tax on Social Security” pledge is fulfilled via the bill, in addition to pledges like “No tax on tips” and “no tax on overtime.”
As background, during the 2024 presidential campaign, President Trump campaigned on the idea of a number of tax cuts calculated to boost his support amongst the elderly and working people, in addition to the middle class that was helped by his Tax Cuts and Jobs Act in 2017. One of his main ideas, one that appears to have won him much support from the heavily voting retiree bracket, was his pledge to end taxation on Social Security income.
Now it looks like that pledge is becoming reality through the BBB, as was explained on X by the Trump Administration’s official “Rapid Response 47” account, which noted that the new tax deduction for seniors on Social Security that is being created by the bill is enough to ensure that those seniors who are reliant on their Social Security income aren’t, on a net basis, paying taxes on it.
Posting about the matter on X, the Rapid Response 47 account noted, referencing a report from the Council of Economic Advisors, “The One Big Beautiful Bill delivers on President Trump’s NO TAX ON SOCIAL SECURITY promise. Under the One Big Beautiful Bill, 51.4 million seniors — 88% of all seniors receiving Social Security income — will pay NO TAX on their Social Security, according to @CEA47.”
Explaining why that is the case, the account then noted that the new tax deduction would more than cancel out the taxes paid on Social Security income, providing, “Under the One Big Beautiful Bill, a senior who files as a single taxpayer and receives the current average retirement benefit (approx. $24,000) would see deductions that *exceed* their taxable Social Security income. No Tax on Social Security.”
Further, the account noted that the same outcome is true of those seniors who are married and receiving the average annual amount of Social Security income. It provided, “Married seniors who both receive the average $24,000 Social Security income — a total of $48,000 in annual income — would also see deductions that *exceed* their taxable Social Security income. No Tax on Social Security.”
The referenced Council of Economic Advisors report provided, in addition to charts showing how seniors will end up not paying net taxes on their Social Security income, details on the size and relevance of the new deduction. It began, “The One Big Beautiful Bill provides a new bonus deduction of $6,000 for seniors age 65 and older ($12,000 for married seniors) beginning in 2025. This amounts to the largest tax break in American history for our nation’s seniors.”
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Continuing, the report described how it will work in conjuction with the TCJA deductions, stating, “The new deduction is on top of the standard deduction and the current-law additional deduction for seniors. The bill also increases and permanently extends the standard deduction and many other features of the 2017 Tax Cuts and Jobs Act that were otherwise scheduled to expire after this year, resulting in significant ongoing savings for most taxpayers.”
Concluding, that section noted the main fact of importance here, which is that the new deduction will ensure a vast majority of those receiving Social Security won’t pay net taxes on it. It provided, “Under the One Big Beautiful Bill, 51.4 million seniors-88% of all seniors receiving Social Security income-will pay no tax on their Social Security.”
Watch Trump make his no tax on Social Security pledge here: