Trump says 88% of US retirees will now pay zero taxes on Social Security, but can the One Big Beautiful Bill hurt you?

Moneywise and Yahoo Finance LLC whitethorn gain committee oregon gross done links successful the contented below.

Back connected July 1, the White House issued a connection claiming that “88% of each seniors who person Social Security — volition wage NO TAX connected their Social Security benefits” due to the fact that of President Donald Trump’s caller One Big Beautiful Bill Act (1).

However, the White House cited the U.S. Council of Economic Advisers, (2) a subdivision of the President’s office, arsenic the root for this assertion alternatively than an autarkic body.

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Experts astatine the Center for Budget and Policy Priorities (CBPP), meanwhile, person taken a person look astatine the megabill’s interaction connected the Social Security programme and recovered that the claims could beryllium “false and exaggerated” (3).

While the statement rages on, knowing wherefore experts disagree with the Trump medication connected this contented could assistance you and your loved ones fig retired if the caller measure volition assistance your finances oregon wounded you instead.

The White House’s calculations hinge connected the megabill’s caller and raised taxation deductions for galore seniors.

Starting this year, seniors aged 65 and supra tin assertion a caller deduction of up to $6,000 per person. For couples filing jointly, that could mean up to $12,000 if some spouses qualify.

These deductions trim taxable income for older Americans. However, the White House acknowledged that astir 64% of Social Security recipients already paid nary national taxation connected their benefits earlier the caller law, acknowledgment to existing deductions and exemptions.

Eligibility isn’t based connected property unsocial — modified adjusted gross income (MAGI) besides matters.

Only Individuals earning $75,000 oregon little tin assertion the afloat deduction. After this, it phases retired and vanishes wholly astatine $175,000. For associated filers, it starts phasing retired astatine $150,000 and disappears wholly astatine $250,000.

Meanwhile, older Americans who are hardly getting by apt won’t person the income indispensable to instrumentality vantage of the deduction. If your full allowable deductions already transcend your income, an other $6,000 doesn’t bash much.

It’s besides worthy noting that the White House’s figures see lone beneficiaries aged 65 and over, but Social Security tin beryllium claimed arsenic aboriginal arsenic 62, meaning a information of the recipient colonisation is excluded from their estimate.