Does Donald Trump's 'Big Beautiful Bill' provide tax relief on Social Security income? Here are FAQs
Trump's Council of Economic Advisors have released a new report that elaborates on the financial nitty-gritties of the new bill. It states that the new One Big Beautiful Bill (OBBB) has delivered on Trump's promise of tax relief on Social Security income. However, the tax break can only be availed by senior citizens aged over 64 years.
Moreover, this tax relief does not come free from terms and conditions. Only those who fit the criteria can avail 100 per cent tax break, while others may get partial deductions. It is also to be noted that this tax break will only be applicable till Trump holds the President's office, i.e., till 2028.
Also read: Social Security: Why beneficiaries may receive reduced payments from July 2025
Terms and conditions of Trump's One Big Beautiful Bill
According to the report published by the Council of Economic Advisors, the bill will provide a $6,000 tax deduction for individuals who are aged 64 years and above, who currently pay income tax on their Social Security benefit. However, for those earning more than $75,000, or $150,000 for couples, will experience a few deductions on the tax relief.
For example, individuals with an income over $175,000, or $250,000 in the case of couples, will not be able to avail of any benefit on the tax relief. Meanwhile, there will be a $60 deduction on the relief for every $1000 in additional income, if it crosses the above-mentioned threshold of $75,000 for individuals and $150,000 for couples.
While there have been debates on how useful the new OBBB could be for citizens in America, it is clear that the relief will only be beneficial for those middle-class seniors who pay tax on their Social Security. On the other hand, those who live in poverty and are already exempted from paying taxes will receive no additional benefits from this bill, stated a Daily Mail report, citing Marc Goldwein from the Committee for a Responsible Federal Budget. It has also been reported that almost 64 per cent of seniors do not pay taxes on Social Security, according to the White House's analysis.
While this bill might have provided a tax relief on Social Security, it does not fulfil Trump's promises as it comes with terms and conditions.
FAQs
1. What is the new bill called that provides tax relief on Social Security income?
The Trump administration has introduced the One Big Beautiful Bill to provide tax relief on Social Security income.
2. Under OBBB, is the tax relief applicable to all those who avail social security?
No, the 100 per cent tax relief is only applicable to those who are above 64 years, pay tax on Social Security income, and receive under $75,000 for individuals or $150,000 for couples.
3. How much tax relief can an individual avail with the new OBBB?
Under the OBBB, those who fulfil the criteria can avail tax benefits of up to $6,000.
4. Will this OBBB be applicable forever?
No, the OBBB will only be in existence during Trump's Presidency till 2028.
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