OBBBA Delivers Meaningful Tax Relief to Seniors

The One Big Beautiful Bill Act (OBBBA), which extended and enhanced the 2017 Tax Cuts and Jobs Act, included other significant benefits to taxpayers, like fulfilling the promise President Trump made during the 2024 presidential election campaign to eliminate taxes on Social Security benefits.  The OBBBA allows taxpayers aged 65 and over to deduct between $6,000 and $12,000 from their taxes for tax years 2025-2028.

Single filers who make under $175,000 and married filers who make under $250,000 are eligible for the deduction, whether they take the standard deduction or itemize their tax returns.  Combining the new deduction with the higher standard deduction will allow seniors to keep significantly more of their hard-earned money.

According to a June 2025 Council of Economic Advisers analysis, the increased deductions will enable 88 percent of seniors who receive Social Security will pay no taxes on their benefits.  Elder Americans have paid into Social Security for decades and these benefits are vital to their economic survival in retirement.  By providing enough tax relief to eliminates taxes on Social Security benefits, President Trump and Republicans in Congress have delivered a massive economic benefit to tens of millions of taxpayers over the age of 65.

The OBBBA will allow those who have retired or are living on a fixed income to keep more of the money they have earned from working and paying into Social Security.