The Trump administration’s initial promise to eliminate federal taxes on Social Security benefits has taken a new turn. The House of Representatives has approved a bill that offers a more restricted tax relief for Americans over 65. This proposal, now heading to the Senate, introduces a temporary deduction, marking a significant shift from the original campaign promise. Tom O’Saben, Director of Government Relations at the National Association of Tax Professionals, noted that this is “far from making Social Security tax-free.”
The legislation proposes a $4,000 deduction per qualifying individual, applicable from 2025 to 2028.
A $4K deduction is diddlysquat. Which is not surprising since Trump is a bag of hot air who never delivers anyway. This is par for the course.
Tax reform changes regarding Social Security with the Trump bill
The Trump administration’s proposals regarding Social Security are taking a new direction in the legislative landscape. Initially proposed as a complete elimination of federal taxes on Social Security benefits, a campaign promise that generated widespread expectations, it has evolved into a House bill proposing a temporary and limited tax deduction.