Editor’s Note: After a long career in the data processing industry, Russell Gloor joined the Association of Mature American Citizens in 2013. Gloor received training from the National Social Security Association and was accredited by the NSSA® as a Social Security adviser in 2016. Currently part of the AMAC Foundation’s Social Security Advisory team, he annually counsels thousands of American seniors about their Social Security options. In addition to answering Social Security questions daily, he also authors the AMAC Foundation’s nationally syndicated weekly “Ask Rusty” advice column and has written three Social Security instructional books about Social Security.

Dear Rusty: The Trump Administration is saying 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

Dear Confused Taxpayer: You are obviously referring to the so-called “one big, beautiful bill” and how that bill affects income tax on your Social Security benefits. And this is because of the publicity surrounding the so-called “one big, beautiful bill” enacted last year, which claims to “eliminate income tax on Social Security benefits.” Well, that bill did, yet technically didn’t, fully eliminate income tax on benefits.” Allow me to explain.

The OBBB does eliminate income tax on most Social Security benefits, but it does so in a somewhat unique way – by providing an additional $6,000 (per person) deduction to your federal taxable income as reported to the IRS. Thus, you will pay less total income tax when you file your taxes with the IRS because of that additional deduction to your taxable income. The extra deduction is available to those over age 65 and is meant to offset the income tax which will still be levied by the IRS on the Social Security benefits you received in 2025.

Essentially, the rules governing income tax on Social Security benefits have not changed. The IRS will still levy income tax on your Social Security benefits if your combined income from all sources (known as your “provisional income”) is over $32,000 as a married couple filing jointly, or more than $25,000 if you file as an individual. If your provisional income is below the threshold for your IRS filing status, you will pay no income tax on your received 2025 Social Security benefits. But if your provisional income exceeds the threshold for your IRS filing status, then somewhere between 50% and 85% of your received Social Security benefits will be taxed (how much Social Security income to be taxed depends on your combined income in 2025).

By now, you should have received form 1099-SSA which advised of your 2025 Social Security income, including any income tax you had withheld from your Social Security benefits. This income should be reported when submitting your 2025 income tax return. If your “provisional income” is over $32,000 as a married couple filing jointly (or over $25,000 as an individual filer), then your 2025 Social Security benefits will still be taxed by the IRS. But when completing your 2025 Income Tax Return, you will also be able to claim an additional $6,000 per person ($12,000 if you file jointly), which will likely offset any income tax you must pay due to the Social Security benefits you received in 2025. If you use a tax preparer (or tax preparation software), they will guide you through this calculation. Note, too, the $6,000 per person deduction amount will be less if your combined taxable income is more than $150,000 as a married couple (or more than $75,000 as a single filer).

Be aware, though, the OBBB is temporary tax accommodation which expires after tax year 2028. And that’s because the process used to pass the bill in Congress (a “budget reconciliation” process) didn’t actually change Social Security law; rather it provided a way around it to offset income tax paid on Social Security benefits.

So, to recap, the IRS can still levy income tax on your received Social Security benefits but, because of the OBBB, you will likely also (depending on your provisional income level) receive an extra deduction which offsets any taxes calculated on your Social Security benefits.

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association. NSSA® and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit their website (amacfoundation.org/programs/social-security-advisory) or email ssadvisor@amacfoundation.org.