Washington, D.C. (WDNews) — A new provision in President Donald Trump’s One Big Beautiful Bill is set to provide millions of seniors with a significant tax benefit.
For almost 90% of recipients, the new provision removes federal income taxes from Social Security payouts.The measure was praised by the Social stability Administration (SSA) as a significant step toward safeguarding the financial stability of elderly Americans.
According to Social Security Commissioner Frank Bisignano, this is a historic stride forward for America’s elderly. This law helps guarantee that seniors may better enjoy the retirement they have earned by drastically lowering the tax burden on payments, which underlines President Trump’s pledge to safeguard Social Security.
What the new law does:
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Eliminates federal taxes
on Social Security benefits for the vast majority of recipients.
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Increases the standard deduction
for Americans aged 65 and older.
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Ensures immediate and meaningful financial relief
for retirees on fixed incomes.
The $165 billion One Big Beautiful Bill, which includes the tax change, is part of a larger national initiative that aims to boost immigration, law enforcement, and national security while also reducing financial burdens on Americans.
In order to notify beneficiaries about the potential effects of these changes on their 2025 tax returns and beyond, the SSA said it will collaborate closely with other federal agencies.
