A recent email from the Social Security Administration (SSA) that had been sent out to millions of its beneficiaries is now sparking major confusion due to its misleading nature. The email in question was sent out by the agency regarding the legislation recently singed into law by President Donald Trump known as the One Big Beautiful Bill Act.
Under this new bill, seniors aged 65 and older will be able to qualify for an additional $6,000 tax deduction for a temporary period, however, it appears that many official channels, including the White House, are framing this tax relief as the elimination of taxes on Social Security benefits — sparking concern and confusion from many.
Here is what you need to know.
Email from the Social Security Administration
On July 4th, President Trump officially signed the One Big Beautiful Bill Act into law and has since been claiming that this new bill eliminates taxes on Social Security benefits. During his 2024 presidential campaign, Trump made repeated promises to eliminate taxes on Social Security benefits if elected. However, the elimination of taxes on benefits would put the program at large in major financial trouble as it would effectively eliminate a source of revenue.
Despite this, the temporary tax relief for seniors under the new bill is being framed as something that will “eliminate federal income taxes on Social Security benefits for most beneficiaries.” Furthermore, an email sent to beneficiaries from the SSA on July 3rd is reiterating this stance. The recently appointed SSA Commissioner Frank Bisignano has claimed that this change is a “historic step forward for America’s seniors.”
As such, some excerpts from the July 3rd email reads as follows:
“The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation’s economy.”
The email continues on with, “The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned.”
Furthermore, Commissioner Bisignano also states the following in the email: “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”
What are people saying?
Whilst the email appears to focus on the fact that under the OBBBA, 90% of beneficiaries will have taxes on benefits eliminated, this is in fact not the case. Taxes on benefits have not been eliminated, but rather the thresholds of taxable income for beneficiaries has changed and as a result, a larger number of beneficiaries will no longer be required to pay tax on their benefits.
Subsequently, many recipients of the email felt that the framing or wording of the content came across as misleading as it implied that there had been a permanent repealing of taxes on Social Security benefits — which, again, is not the case.
Following the email, New Jersey Democrat, Rep. Frank Pallone, made a post on social media platform X stating that the email is “a lie” and that “Trump hijack[ed] a public institution to push blatant misinformation.”
Former SSA senior adviser, Kathleen Romig, said to CNN, “People are like: ‘Is this real? Is this a scam?’ Because it’s not what they signed up for. It doesn’t sound like normal government communications, official communications. It sounds like – you know – partisan.”
“The agency has never issued such a blatant political statement. The fact that Trump and his minion running SSA has done this is unconscionable,” former SSA deputy commissioner, Jeff Nesbit posted on X.