Blue Press Journal – In recent months, President Donald Trump and J.D. Vance have claimed that the “One Big Beautiful Bill” (OBBB), signed into law in July, eliminated taxes on Social Security benefits. However, a review of the legislation — and independent fact‑checks — show that this is not true.
What the OBBB Actually Did:
The bill reduced the number of seniors who pay taxes on their Social Security benefits by raising the income thresholds at which those benefits become taxable. This means some retirees with modest incomes will no longer owe taxes on their Social Security. But for millions of Americans — particularly middle class and those with higher retirement incomes — taxes still apply.
The History of Social Security Taxes:
Social Security benefits were not taxed at all until 1983, when President Ronald Reagan signed bill that included taxing up to 50% of benefits for individuals earning above certain thresholds. In 1993 a law increasing the maximum taxable portion to 85% for higher‑income beneficiaries was passed. The OBBB did not repeal either of these taxation provisions; it simply adjusted the income thresholds upward.
Expiration:
The OBBB’s threshold increases are temporary. Unless Congress acts, they will revert to pre‑OBBB levels after the set expiration date.
Social Security Benefit Taxation Thresholds
| Filing Status | Pre‑OBBB Thresholds (1983–2024) | OBBB Thresholds (2024–Expiration) | Expiration Date |
|---|---|---|---|
| Single | $25,000 (up to 50% taxable), $34,000 (up to 85% taxable) | $35,000 (up to 50%), $48,000 (up to 85%) | 12/31/2027 |
| Married Filing Jointly | $32,000 (up to 50%), $44,000 (up to 85%) | $45,000 (up to 50%), $60,000 (up to 85%) | 12/31/2027 |
Bottom Line:
Despite political claims, the OBBB did not eliminate taxes on Social Security. It temporarily raised the income thresholds, reducing the number of seniors affected, but millions still owe taxes on their benefits. Unless extended, the thresholds will revert after 2027, restoring the broader tax reach set by previous laws.
Blue Press Journal 