The Social Security Bureau sent a misleading email to recipients and other Americans last week to make Republican Budget Act President Donald Trump recently signed it into law. Advocates are now trying to correct records to ensure beneficiaries know how legislation affects their tax bills.
On July 3, Social Security sent an email and issued a press release saying that “the new law includes a provision to eliminate federal income taxes on social security benefits for most beneficiaries.” It also said that “nearly 90% of beneficiaries” will no longer pay federal income tax on benefits. Republican politicians proposed eliminating taxes on social security, but eventually took the provision from a version of what is called “a large beauty bill,” which became law because it violated Senate rules.
Instead, the law allows Americans aged 65 or older to increase their income tax relief by $6,000. It is worth noting that this does not include beneficiaries aged 62 to 64. The agency updated its press release on Monday to deduct it after outcry and media coverage.
According to the National Council, this difference may allow beneficiaries to maintain social security and health insurance, a nonprofit organization designed to maintain and strengthen social security and health insurance. The panel also noted that the political news behind the email (foreshadowed with the “landmark” legislation – “unprecedented” for the SSA, which should be a neutral agency that manages the benefits of about 73 million Americans. The SSA did not respond immediately wealthMake a request for comment.
Trump has made a commitment to taxing social security benefits during his campaign. Many promised to include the provision when Republican politicians worked to put together the budget bill.
But in order to pass legislation using a process called a settlement, it is determined that the Republican Party cannot include provisions on Social Security Tax. Instead, they replaced the higher interpretations in place of older Americans.
Advanced “Bonus” Deduction
However, legislation in the law signed last week does include a provision that allows Americans aged 65 and older to deduct $6,000 in federal income tax in addition to the standard deduction, which is already larger for older people than younger Americans. Those listed are also eligible for it. For married couples, if both spouses are over 65 years old, a deduction can be made, totaling an additional $12,000.
As with other provisions in the bill, this is a limited time: only valid during the tax season from 2025 to 2028. It also applies to those who get adjusted adjusted earnings up to $75,000, or twice as many as married couples. It then begins to phase out revenue above that threshold, while individuals with incomes of $175,000 or couples who receive $250,000 are not available.
According to the White House, the provision will Increase share For older people who receive social security, they will not pay income tax on benefits of 64% to 88%.
The poorest elderly people won’t benefit from rest because they no longer pay social security taxes (the White House’s own analysis points out that 64% of them have no) – not the richest, given the delay in income. Instead, in the next few years, it was the elderly of the upper and middle classes. People who earn less than $63,300 Pay approximately 1% or less According to the nonpartisan budget and policy priorities center taxes, on average, their interests.
Additionally, this part of the bill actually accelerates the bankruptcy of the program, which is a concern for many Americans as the taxes paid by older people are back in social security and Medicare Trust funds for future generations. In fact, responsible for the Federal Budget Commission (CRFB) Estimated regulations It will put the trust fund one year earlier than the current calculation. Once this happens, social security beneficiaries will face approximately 24% of comprehensive benefits, the CRFB said.
Other provisions in the bill are also expected to affect older people disproportionately. For example, it changed the qualifications of the Supplementary Nutrition Assistance Program (SNAP), which began in 2027, and cut federal funding, which begins in 2027, relies on adults aged 50 and older. New job requirements regarding Medicaid can also prevent some older Americans from getting benefits.
Social security has become a controversial lightning rod since Trump took office in January. The agency is an early goal of the government’s so-called government efficiency division under Elon Musk, who fears advocates say it has become too politicized.
