While the Trump administration has promoted the so-called “big, beautiful bill” as eliminating taxes on Social Security benefits, CBS MoneyWatch and financial experts say that’s not exactly how the measure works.
“It’s much more age-based than it is Social Security-based,” said certified financial planner Franklin Gay, who reviewed the bill’s provisions.
According to Gay, the law adds a $6,000 tax deduction for anyone 65 or older, regardless of whether they receive Social Security benefits. That’s a key difference from the messaging around the bill.
“I would say not,” Gay said when asked if “no taxes on Social Security” was an accurate claim.
Seniors react to clarified details
Walter Raser, a retiree living on a fixed income, initially welcomed news of a tax break.
“I live on Social Security. Social Security is my income,” Raser said.
After hearing early reports about the bill, Raser was thrilled, believing it would mean a full tax break on his benefits. But CBS News Miami later shared the full details with him, including Gay’s explanation of the age-based deduction.
“I thank Channel 4. I thank you guys for going in and digging in to find the real information that’s gonna help all of us,” Raser said.
Tax benefit has income limits and expiration date
According to the Social Security Administration, the law “includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries,” though that depends on income level and other factors.
Deductions not permanent
The deductions in the bill are not permanent.
They are set to expire at the end of 2028. Additionally, higher-income seniors will see limited benefits.
Gay said a single filer earning more than $75,000 or a couple with combined income above $150,000 will not be able to deduct the full amount.
