I got an “official” email from the Social Security Administration that caught my eye about the recent budget bill signed into law. It read in part…

“The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation’s economy.”

My first thought was wow, that could really save me some money when I file my 2025 taxes. I remember there had been some discussion about that but have to admit (like many other politicians) I did not read all 1,000 pages of the bill.

Turns out, the email was misleading at best.

The bill includes a temporary tax deduction of up to $6,000 for seniors ages 65 and older, and $12,000 for married seniors. The president’s Council of Economic Advisers argued last month that nearly 9 out of 10 seniors would not pay any federal taxes on their Social Security benefits because the new deduction would eliminate their tax burden.

“This is a historic step forward for America’s seniors,” said Social Security Commissioner Frank Bisignano in the email. “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans.”

This isn’t the first time the Trump administration has used a governmental agency to promote his agenda. You can’t turn on the TV with seeing the Department of Homeland Security running anti-immigrant ads in the United States and overseas that repeatedly thank President Donald Trump for leading an immigration crackdown (at a cost of up to $200 million).

Homeland Security Secretary Kristi Noem said those ads were Trump’s idea, and during the administration’s transition to power, the president asked her to star in ads thanking him “for closing the border.”

Now we have the IRS celebrating the passage of the so called “One Big, Beautiful Bill”, which they called a landmark piece of legislation that delivers long-awaited tax relief to millions of older Americans.

This has led some to worry that the message may violate the Hatch Act, which prohibits partisan political activities of most federal executive branch employees, including the SSA and its commissioner who was also quoted in the email as saying…

“By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”

While Trump repeatedly promised to eliminate federal income taxes on Social Security benefits, congressional rules prevented amendments to Social Security through the reconciliation process and so was not included in the bill.

The bill does include legislation that gives American taxpayers aged 65 and over a $6,000 boost to their standard deduction, which will impact all taxable income, including Social Security benefits, from 2025 through 2028 (individuals with incomes up to $75,000 and couples with incomes up to $150,000 can deduct the full $6,000). 

Say, for example, a person received $60,000 in social security benefits. They would be taxed on $54,000 of the money in addition to any other deductions they may qualify for.  And these savings expire in 2028 after Trump term ends leaving the next president and congress in the position of ending it, extending it, or modifying it.

Claims the major new spending bill has eliminated taxes on benefits for most recipients is disingenuous at best, but as with many political promises, it is always wise to pull back the curtain to see what is really taking place.