Commentary/explainer on Big Beautiful Bill

Bolling talks about what actually changes with the tax on social security tax income.

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Commentary: what is happening with the income tax for social security

by Bill Bolling, a former two-term Republican lieutenant governor

It seems like I spend a lot of time these days trying to provide factual information about the important issues of the day.

Unfortunately, much of the information you see of social media, especially the information provided by political figures and political parties, is just not accurate. It is presented in a way that tries to manipulate public opinion.

Take, for example, the recent proclamations that the “Big Beautiful Bill” eliminated the federal income tax on social security benefits. Folks, that is simply not true.

While the "Big Beautiful Bill" did provide some additional tax relief to seniors, and that is a good thing, it did not eliminate the tax on social security benefits. Here's what you need to know.

The “Big Beautiful Bill” did nothing to change the way social security benefits are taxed. Social security benefits will still be taxed exactly as they have always been taxed.

What the “Big Beautiful Bill” did do was give seniors an additional income deduction of $6,000 for individuals or $12,000 for couples, and that's a good thing.

However, this additional income deduction is NOT permanent. It will expire in 2028.

In addition, this additional income deduction is only available to seniors with total incomes up to $75,000 individually, or $150,000 on a joint return. (The deduction is lowered for seniors with incomes above that level, and phased out altogether for seniors with individual incomes more than $175,000, or $250,000 jointly.)

It is also important to remember that seniors can currently claim a standard income deduction of $15,000 ($30,000 for couples), plus an additional senior specific income deduction of $2,000 ($3,600 for couples).

So, here’s the good news.

For the next four years the new income tax deduction, combined with the existing deductions discussed above, means that the average Social Security beneficiary will not pay taxes on the first $23,000 of their income if they file as an individual, or on the first $45,600 of their income if they file as a couple.

If you happen to be a senior who has a total income (from all sources) of less than $23,000 (individual) or $45,600 (couple), you will pay no federal income tax. But most taxpayers have income from other sources, i.e., full or part time employment, investments, other retirement benefits, etc.

In summary, if you want to be factually accurate, it is fair to say that the “Big Beautiful Bill” will provide a temporary tax cut for seniors, and that’s a good thing; but it is not correct to say that the bill will eliminate the tax on social security benefits. It does no such thing.

BTW, this is not intended to be a criticism of the "Big Beautiful Bill." It is just intended to point out what the bill actually does and does not do.

Many times you have to measure what politicians tell you with a grain of salt. They will always try and "spin" the facts to suit their purposes.

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