Paying taxes on Social Security benefits has long been a topic of debate and as such, the now elected President Donald Trump had made repeated promises to eliminate taxes on benefits during his presidential campaign in 2024. Eliminating taxes on Social Security income is no simply procedure and cannot be done due to Congressional rules that prevent amendments to Social Security. Despite this, a new tax break for seniors that is included in the new mega bill, the One Big Beautiful Bill Act, is being framed as the elimination of taxes on Social Security benefits by the president and other official channels.
The Social Security Administration (SSA) appears to also be leaning into this narrative according an email that had been sent out by the agency to beneficiaries on July 4th — the same day that the One Big Beautiful Bill Act was officially signed into law by President Trump. This email resulted in confusion and harsh criticism from politicians, former SSA officials, and beneficiaries. Here is what you need to know.
Misleading SSA email claims “No tax on Social Security benefits”
Under the provisions of the One Big Beautiful Bill Act, seniors aged 65 and older will be granted an additional tax deduction of $6,000 for single filers and $12,000 for joint filers for a temporary period beginning in 2025 and ending in 2028. Furthermore, in order to qualify for the additional tax break, the filer’s income must not surpass $75,000 for single filers and $150,000 for joint filers.
The elimination of taxes on Social Security benefits are not mentioned in the OBBBA, nor had it even been proposed in initial drafts of the bill. Taxes on benefits cannot be eliminated due to Congressional rules, and not to mention that the elimination of taxes on benefits would result in the loss of one of three sources of revenue funding the program — a program that is already under severe financial strain.
Regardless of this, the tax break is now being framed as the elimination of taxes on benefits for 90% of beneficiaries and the email sent by the SSA claims that 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 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,” the email reads further.
Additionally, SSA Commissioner Frank Bisignano also goes on to state in the email that, “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?
The accuracy of the SSA’s email was almost immediately questioned with many people, including former SSA officials taking to social media to air their concerns. Former SSA Deputy Commissioner, Jeff Nesbit, made a post on X that reads as follows, “The agency has never issued such a blatant political statement. The fact that Trump and his minion running SSA has done this is unconscionable.”
New Jersey representative Frank Pallone also claimed via X post that “every word” of the email “is a lie”. The post continued on to say that, “This big, ugly bill doesn’t change that. It’s disturbing to see Trump hijack a public institution to push blatant misinformation.”
Other social media users made mention of the Hatch Act, questioning whether or not the message is a violation of the act that “which bars most federal executive branch employees from engaging in partisan political activity while on duty.”
“I mean that Social Security email has got to be a Hatch Act violation, correct?” Cary Waxler posted on X.