Will your Social Security checks get bigger? The truth behind the GOP tax bill
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If you’ve been hearing that Social Security income might soon be tax-free, you’re not alone.
As headlines swirl and campaign promises resurface, many retirees are wondering:
Is the government really planning to stop taxing our Social Security benefits?
During the 2024 campaign, President Trump pledged to eliminate federal income taxes on Social Security benefits. That promise gained traction among older Americans, many of whom rely on these checks to cover essentials like rent, groceries, and medication.
Under current law, up to 85% of your Social Security benefits may be taxed if your combined income exceeds a certain threshold. About 40% fall into that category, according to the Social Security Administration.
So—did the new bill fulfill Trump’s promise?
Here’s the bottom line: The new GOP tax bill does NOT eliminate federal taxes on Social Security benefits.
Despite high hopes and campaign trail vows, the bill falls short of making Social Security income tax-free. Instead, it focuses on other priorities, including:
Also read: Big changes ahead: Social Security payroll tax set to end?
If you’re 65 or older, this new deduction could put more money back in your pocket. Here’s how it works:
Why isn’t Social Security tax-free yet?
The short answer: the Byrd Rule.
This little-known Senate rule blocks changes to Social Security through budget reconciliation bills. That means any major move—like ending taxes on benefits—requires separate legislation that faces more hurdles and a tougher vote count.
Even if lawmakers wanted to deliver on Trump’s pledge, they couldn’t include it in this particular bill.
There’s a deeper concern behind the scenes: Social Security’s solvency.
The program’s trust funds are already under pressure. A 2024 government report warns that if Congress doesn’t act, benefits could face a 17% cut by 2035.
Also read: This state just passed major property tax cuts—here’s who benefits, and who’s footing the bill
Eliminating taxes on Social Security would strip $950 billion in revenue over the next decade. That’s a big hit for a program already facing a funding shortfall—and one reason some experts say now isn’t the time.
Andrew Biggs, policy expert at the American Enterprise Institute, called the tax-cut idea “not affordable nor necessary” and warned it could “disappoint retirees expecting a bigger break.”
The legislation is still in draft form and must pass both the House and Senate. With a narrowly divided Congress, changes are still possible—so nothing is final yet.
House Speaker Mike Johnson has championed the bill, calling it “One Big, Beautiful Bill” and saying it fulfills the America First agenda. Whether that includes future changes to Social Security taxation remains to be seen.
Read next: Tax chaos could be a goldmine—for the wrong people. Taxpayers at risk amidst as IRS uncertainty
Have you been hoping for tax-free Social Security? Would it make a real difference in your retirement budget? What are your thoughts on balancing tax relief with the long-term stability of the Social Security program? We want to hear from you. Share your questions, opinions, and experiences in the comments below. Your voice helps others in our community stay informed and empowered.
As headlines swirl and campaign promises resurface, many retirees are wondering:
Is the government really planning to stop taxing our Social Security benefits?
During the 2024 campaign, President Trump pledged to eliminate federal income taxes on Social Security benefits. That promise gained traction among older Americans, many of whom rely on these checks to cover essentials like rent, groceries, and medication.
Under current law, up to 85% of your Social Security benefits may be taxed if your combined income exceeds a certain threshold. About 40% fall into that category, according to the Social Security Administration.
So—did the new bill fulfill Trump’s promise?
Here’s the bottom line: The new GOP tax bill does NOT eliminate federal taxes on Social Security benefits.
Despite high hopes and campaign trail vows, the bill falls short of making Social Security income tax-free. Instead, it focuses on other priorities, including:
- Raising the debt ceiling by $4 trillion
- Extending select Trump-era tax cuts
- Introducing new tax breaks on tips, overtime pay, and auto loans
Also read: Big changes ahead: Social Security payroll tax set to end?
If you’re 65 or older, this new deduction could put more money back in your pocket. Here’s how it works:
- It’s an additional deduction on top of the standard one
- Applies to tax years 2025 through 2028
- Phases out for incomes above $75,000 (single) or $150,000 (married couples)
- Both filer and spouse (if applicable) must have valid Social Security numbers
Why isn’t Social Security tax-free yet?
The short answer: the Byrd Rule.
This little-known Senate rule blocks changes to Social Security through budget reconciliation bills. That means any major move—like ending taxes on benefits—requires separate legislation that faces more hurdles and a tougher vote count.
Even if lawmakers wanted to deliver on Trump’s pledge, they couldn’t include it in this particular bill.
There’s a deeper concern behind the scenes: Social Security’s solvency.
The program’s trust funds are already under pressure. A 2024 government report warns that if Congress doesn’t act, benefits could face a 17% cut by 2035.
Also read: This state just passed major property tax cuts—here’s who benefits, and who’s footing the bill
Eliminating taxes on Social Security would strip $950 billion in revenue over the next decade. That’s a big hit for a program already facing a funding shortfall—and one reason some experts say now isn’t the time.
Andrew Biggs, policy expert at the American Enterprise Institute, called the tax-cut idea “not affordable nor necessary” and warned it could “disappoint retirees expecting a bigger break.”
The legislation is still in draft form and must pass both the House and Senate. With a narrowly divided Congress, changes are still possible—so nothing is final yet.
House Speaker Mike Johnson has championed the bill, calling it “One Big, Beautiful Bill” and saying it fulfills the America First agenda. Whether that includes future changes to Social Security taxation remains to be seen.
Read next: Tax chaos could be a goldmine—for the wrong people. Taxpayers at risk amidst as IRS uncertainty
