In this 2022 image, a woman enters a Social Security office in Houston. The Social Security Administration recently sent an email to numerous Americans celebrating the passing of President Donald Trump’s domestic policy bill. The email touted the tax relief for seniors provided by the legislation, a move that experts noted as departing from the agency’s usual apolitical stance.
Social Security Commissioner Frank Bisignano remarked in the message, “This legislation marks a significant advancement for America’s seniors. By reducing the tax burden on benefits, it upholds President Trump’s commitment to safeguard Social Security, ensuring that seniors can better enjoy their well-deserved retirement.” The email, which was also sent to individuals not yet eligible for Social Security benefits, directed recipients to a blog post on the agency’s website highlighting that nearly 90% of Social Security beneficiaries would no longer be subject to federal income taxes on their benefits.
While Trump had campaigned on eliminating taxes on Social Security benefits, congressional Republicans were unable to achieve this due to reconciliation rules. Instead, the legislation offers senior citizens a $6,000 increase to their standard deduction from 2025 to 2028. The enhanced deduction phases out for those with incomes exceeding $75,000 for individuals and $150,000 for married couples.
Although Trump and GOP officials have repeatedly claimed that the bill eliminates taxes on Social Security benefits, this is not explicitly stated in the legislation. The enhanced deduction may not benefit all monthly benefit recipients, such as those who start receiving benefits at 62 but are not yet 65.
The White House shared an analysis stating that 88% of the 58.5 million seniors aged 65 and older receiving Social Security benefits would not pay taxes on their benefits. However, over 7 million seniors would have taxable Social Security income exceeding the enhanced deduction and existing standard deductions.
The legislation is projected to reduce total taxation of benefits by about $30 billion annually, potentially advancing the insolvency of Social Security and Medicare trust funds. Many seniors with low incomes may not benefit from the enhanced deduction or the elimination of taxes on monthly benefits, as Social Security benefits are not taxable for approximately half of beneficiaries.
Analysts noted that the email from the SSA departed from its usual apolitical stance, as the agency’s director is typically expected to refrain from making political statements.
In late 2024, Martin O’Malley expressed concern about the potential impact of Trump’s proposals on Social Security, warning that they could deplete the program’s resources and prevent future generations from benefitting as previous ones had. Kathleen Romig, a former senior advisor at the SSA under the Biden administration, reported receiving inquiries from individuals confused by an email they had received, questioning its authenticity and political undertones. Social media users also criticized the email for its perceived partisan nature. Jeff Nesbit, a former deputy commissioner at the SSA, denounced the email as unprecedented and inappropriate. Romig emphasized the importance of protecting vulnerable populations served by the SSA from falling victim to scams and emphasized the need for clear communication from official government channels to maintain trust. CNN’s request for comment from the SSA went unanswered. For more news and newsletters from CNN, visit CNN.com and create an account.
