The “No Tax on Social Security” claim in the One Big Beautiful Bill generated buzz, but it’s not exactly what it sounds like. Now that’s officially law, let’s break down what that really means. The Act does not eliminate federal income taxes on Social Security benefits. Instead, it introduces a temporary tax deduction of up to $6,000 for individuals aged 65 or older with modified adjusted gross income (MAGI) under $75,000, or $12,000 for married couples filing jointly with MAGI under $150,000. This deduction is in effect through 2028 and reduces overall taxable income, which means many seniors will no longer owe federal tax on their Social Security benefits.
Importantly, this Act does not affect monthly Social Security benefits. The amount seniors receive each month remains unchanged. It also does not change any existing federal withholding tax from Social Security checks—those withholdings will continue as usual. What the Act does change is how much tax some individuals may ultimately owe on those benefits—not the benefits themselves.
If you have any questions about “No Tax on Social Security,” please contact us for assistance. As always, our job is to make your life less taxing