Instead of Eliminating Social Security Taxes, the Big Beautiful Bill Provides a ‘Senior Bonus’

President Donald Trump has promised to eliminate taxes on Social Security benefits since the campaign, and now he says the ‘Big, Beautiful Bill’ will finally achieve this goal. However, that’s not quite the case.

About 40% of Social Security beneficiaries, or 27.4 million people, pay income taxes on their benefits each year. In a post on his social media platform Truth Social Friday, Trump said that his Big Beautiful Bill would eliminate those taxes.

While the bill introduces tax cuts that some call a “senior bonus,” it does not eliminate taxes on Social Security benefits.

What Is Included In The Bill?

Instead of eliminating taxes on Social Security benefits, the Senate’s version of the Big Beautiful Bill calls for a tax break of up to $6,000 per person, which would be phased out at higher incomes.

This new deduction would apply only to individual filers 65 and older with a modified adjusted gross income of up to $75,000, or married couples up to $150,000. It would be available to seniors whether they take the standard deduction or itemize their returns.

The exemption for those qualified is only temporary. According to the legislation, it would be effective for tax years 2025 through 2028.

How Is This Different From What Trump Is Saying?

The tax cut applies to the overall income tax rate for those 65 and older, not specifically to the taxes on Social Security benefits.

Because of that, it would not help Social Security recipients who get disability or survivor benefits before turning 65, or those who claim their benefits early. The lowest-earning beneficiaries also wouldn’t benefit from this break, as they already pay no federal income taxes regardless of age, and the highest-earning make too much to qualify for it.

The bill doesn’t fully deliver on Trump’s promise to eliminate taxes on Social Security benefits because the reconciliation process lawmakers are using to pass the bill doesn’t allow changes to the trust funds that support the program.

However, experts said that could be good news for those funds’ lifespan.

“The taxes paid on Social Security income are deposited into the Social Security and Medicare trust funds, not the federal general fund,” said Martha Shedden, president and co-founder of the National Association of Registered Social Security Analysts. “So the effect of [eliminating taxes on benefits] would be to impact the solvency of the Social Security Trust Funds, depleting the reserves more quickly than is now estimated.”

As it stands, the Social Security Trust Fund reserves are already expected to run out by 2034.