The One Big Beautiful Bill’s Massive Tax Cut for Seniors—But It Needs to be Made Permanent and Congress Needs to Repeal the Tax on Social Security

Here are the key points about the One Big Beautiful Bill and its massive tax cut for Seniors:

Age: You must be 65 or older.

Income: The full deduction of $6,000 (or $12,000 for married couples) is available to individuals with modified adjusted gross income (MAGI) up to $75,000 (or $150,000 for couples filing jointly).

Phase-out: The deduction phases out for higher income levels. It reduces by 6% for every $1,000 earned above the threshold.

No deduction: You cannot claim any of the deduction if your income exceeds $175,000 (single) or $250,000 (married filing jointly).

Duration: This deduction is temporary and is in effect for tax years 2025 through 2028.

Not linked to Social Security: The deduction is not tied to Social Security payments themselves. It simply reduces taxable income for qualifying retirees.

Other deductions: You can claim this deduction whether you take the standard deduction or itemize your returns.

NOTE: The One Big Beautiful Bill doesn’t eliminate taxes on Social Security, but rather introduces a temporary deduction that beneficiaries can claim to lower their federal income tax. Notably, that deduction applies to all of a senior’s income — not just to Social Security benefits.

How did Social Security Benefits Get Taxed

Heres what happened to Social Security:

1. Before 1984, Social Security benefits were not taxed. In 1983, legislation was passed that made up to 50% of benefits taxable for certain higher-income individuals. 
2. he Omnibus Budget Reconciliation Act (OBRA) of 1993, signed by President Clinton, increased the maximum taxable portion of Social Security benefits to 85%. 
3. The higher 85% tax rate applied to those with combined incomes (including Social Security benefits) above $34,000 for single filers and $44,000 for joint filers, according to Kiplinger and the Social Security Administration. 
4. This change meant that a greater portion of Social Security benefits became subject to federal income tax, effectively increasing the tax burden on higher-income retirees. 
5. These income thresholds have not been adjusted for inflation since 1993, meaning that over time, more and more retirees have been affected by the taxation of their benefits, according to Kiplinger. 

The Bottom Line

Republicans, Independents and Democrats in Congress must come together and make this massive tax cut for Seniors permanent.

Additionlly, Congress must repeal the tax on social security benefits before the 2026 midterm election.

Seniors have been double taxed on their Social Security by former President Bill Clinton.

It is time to call your Representative and your two Senators and ask them to:

1. Make the One Big Beautiful Bill and its massive tax cuts for Seniors permanents and…
2. Repeal the Omnibus Budget Reconciliation Act (OBRA) of 1993 now!

©2025 Dr. Richard M. Swier, LTC U.S. Army (Ret.). All rights reserved.

The post The One Big Beautiful Bill’s Massive Tax Cut for Seniors—But It Needs to be Made Permanent and Congress Needs to Repeal the Tax on Social Security appeared first on Dr. Rich Swier.