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Seniors get a tax break in Trump’s megabill, but many will still pay taxes on Social Security benefits. Here’s the real deal

UNITED STATES, JUL 13 – The tax bill offers a $6,000 deduction for seniors but retains Social Security benefit taxes, affecting about 29 million households, according to the Urban-Brookings Tax Policy Center.

  • On July 4, 2025, President Donald Trump signed the sweeping tax and spending cuts package, providing a new tax break for seniors but including no provision to make Social Security benefits tax free.
  • Congressional Republicans could not eliminate taxes on Social Security benefits due to Senate reconciliation rules, and instead Trump’s 2024 campaign promise resulted in a $6,000 deduction for seniors through 2028.
  • At least some senior citizens remain confused about what’s in the bill, Larry Gray said, while Urban-Brookings Tax Policy Center projects about 29 million households will owe taxes on benefits, and Tom O'Saben warned `There is no provision making Social Security benefits tax free`.
  • The Committee for a Responsible Federal Budget projects the package will speed insolvency of both trust funds to 2032 from 2033, and the reduced income taxes on benefits will indirectly hurt Social Security and Medicare finances.
  • All the misleading buzz about Social Security tax cuts for seniors foreshadows one ugly scene after another at tax preparation offices next year, and recipients younger than 65 will remain ineligible for the senior deduction they would have gained under full repeal.
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Seniors get a tax break in Trump’s megabill, but many will still pay taxes on Social Security benefits. Here’s the real deal

Senior citizens are getting a tax break in President Donald Trump’s sweeping tax and spending cuts package, but it’s not the one the president promised on the campaign trail last year.

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Channel 3000 broke the news in Madison, United States on Sunday, July 13, 2025.
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