Social Security benefits are still taxed under current tax law and considered a part of a recipient’s taxable income. However, the 2025 Tax Act (One Big Beautiful Bill Act) introduced a temporary deduction that allows eligible beneficiaries to lower their overall taxable income and reduce their tax.

The new senior deduction allows eligible seniors and their spouses who are 65 or older to deduct up to $6,000 each from their taxable income for tax years 2025 through 2028. There are adjusted gross income limits to this deduction. It is only available to single filers making less than $75,000 or couples making less than $150,000.

Have questions or concerns about how the new tax act impacts your tax situation or Social Security benefits? We’re open and your Local Tax Pro is ready to help. Book your appointment today.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 06, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.