Social Security income tax deduction clears critical hurdle
New House bill changes standard deduction for seniors over 65.
On the campaign trail, President Donald Trump pledged to eliminate federal income taxes on Social Security benefits for seniors.
However, that promise went unfulfilled, largely due to legislative constraints. Social Security tax policy cannot be changed through budget reconciliation, and eliminating taxes on benefits would require stand-alone legislation – something Congress did not pass.
Related: Secretary Bessent hints Social Security income tax changes are coming
Taxes on Social Security benefits were first introduced under the Social Security Amendments of 1983, signed into law by President Ronald Reagan. The change took effect in 1984, making a portion of benefits subject to federal income tax.
With the original promise off the table, Republicans pursued an alternative: increasing the standard deduction for older taxpayers.
Under current law for 2025, married couples filing jointly receive a standard deduction of $30,000, plus an additional $3,200 for those age 65 and older.
