“No Tax on Social Security”

We are getting a lot of questions about the O.B.B.B Act (One Big Beautiful Bill) provisions.

Today, let’s talk about the provision labeled “No Tax on Social Security”

First - the title is a misnomer - Social Security will continue to be taxed as always, but certain taxpayers will get up to a $12,000 deduction (single person, $12,000 for Married Filing Jointly). Note: If you have no taxable income or owe no tax, you get no deduction.

Starting with 2025 federal returns (filed in 2026), taxpayers 65 and older can claim up to $6,000 in addition to the extra standard deduction for seniors enacted back in 1948.

The latest write-off is available whether you itemize or not. It’s also per eligible individual, so married couples filing jointly can claim $12,000 total.

Currently, the deduction is set to expire in tax year 2028.

Who qualifies for the deduction?

To be eligible, you need to turn 65 on or before Dec. 31, 2025, and file as an individual, head of household, surviving spouse or a married couple filing jointly. (The deduction is not available to married couples filing separately.)

You can claim the new deduction regardless of whether you itemize your return or claim the standard deduction.

There is an income cap, however: For individuals, the deduction is gradually reduced if your modified adjusted gross income (MAGI) is above $75,000 and it’s completely phased out at $175,000.
For couples filing jointly, the deduction starts to be reduced at $150,000 and is completely phased out at $250,000.
So, the most an individual filer can deduct is $6,000, and joint filers can deduct up to $12,000.

We will discuss other provisions in upcoming posts.