President Donald Trump Broke His Vow Not to Tax Social Security Benefits -- and Retirees Are Being Given This Concession Instead
Although Donald Trump didn't hold up his end of the bargain by eliminating the taxation of benefits, select retirees are still on track to qualify for a beefed-up (but temporary) deduction in The One, Big, Beautiful Bill.
In May, the average monthly Social Security benefit for retired workers hit an important milestone by crossing above $2,000 for the first time in the program's history. Though this is a fairly modest monthly payout, Social Security income plays a foundational role for most retirees in helping make ends meet.
Based on an analysis from the Center on Budget and Policy Priorities, Social Security helped pull more than 22 million people above the federal poverty line in 2023, including roughly 16.3 million adults aged 65 and above. What's more, the poverty rate for retirees would soar to an estimated 37.3% if Social Security didn't exist, compared to the 10.1% poverty rate with Social Security income, as of 2023.
For many retirees, getting as much out of Social Security as possible isn't a luxury -- it's a borderline necessity to ensure a rock-solid financial foundation.
