Is There Income Tax on Social Security Benefits?
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Dear Rusty: The Trump Administration is saying that now there will be no taxes on Social Security benefits. Since we’re getting ready to start our 2025 income tax return, can you explain how this all works? Signed: Confused Taxpayer
Rusty’s answer in brief
Social Security benefits can still be taxed. The 2025 tax law (the “One Big Beautiful Bill”) did not change how benefits are taxed; instead it added an extra $6,000 deduction for each person age 65 or older, for tax years 2025 through 2028. For most retirees, that deduction offsets the tax owed on their benefits.
The usual rules still apply: if your provisional income is over $25,000 (single) or $32,000 (married filing jointly), between 50% and 85% of your benefits are taxable. The extra deduction phases down at incomes above $75,000 for single filers and $150,000 for joint filers.
This recording presents the viewpoints of the AMAC Foundation’s Social Security Advisory Staff, trained and accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). NSSA and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government. To request additional information, contact our Advisory Staff at 888-750-2622, or email us at SSAdvisor@AmacFoundation.org.