We explain what new legislation may change for recipients when it comes to taxes.
NORTH CAROLINA, USA — President Donald Trump’s recently signed “Big Beautiful Bill” includes significant tax changes aimed at benefiting seniors, particularly those receiving Social Security.
A recent inquiry from viewer Bob L. questioned the authenticity of an email from the Social Security Administration referencing tax relief under the new law.
On July 3, the SSA released an official email and press statement endorsing the bill, confirming that the communication is not a scam.
Let’s verify the changes you need to know.
OUR SOURCES
THE QUESTION
What does the bill include for taxpayers?
THE ANSWER
The new package includes an additional tax deduction of up to $6,000 for individuals age 65 and older and $12,000 for couples.
This deduction applies to all forms of income, including Social Security benefits, and is designed to reduce overall federal income tax obligations for retirees.
However, the deduction begins to phase out for individuals earning more than $75,000 annually and phases out completely at $175,000 for individuals and $250,000 for couples.
THE QUESTION
How will this impact federal tax withholdings for Social Security recipients?
THE ANSWER
The change does not directly alter Social Security benefits but may affect how much federal tax is withheld from recipients’ monthly payments. Seniors are encouraged to adjust their withholding preferences with the SSA or IRS if they expect their tax liability to decrease under the new law.
The deduction is available beginning in the 2025 tax year and set to expire at the end of 2028, unless action by Congress is taken.
For the latest breaking news, weather and traffic alerts that impact you from WCNC Charlotte, download the WCNC Charlotte mobile app and enable push notifications.
