✪ Tax Free Social Security Benefits?

You might have heard Trump promise back in 2024 and more recently this year, that he would make Social Security benefits tax free.

This is a bit of an oversimplification of the recent law change in the nearly 1,000 page bill that was signed into law on July 4, 2025.

While this bill doesn’t necessarily state that Social Security benefits are non-taxable, due to a provision, many seniors will see an overall tax reduction.

Starting in 2025 and running through 2028, seniors age 65 and older will get an extra $6,000 deduction on top of their regular standard deduction. (Income limits apply). This is in addition to the existing age-based deduction you already get once you turn 65.

Here’s how it works:

If you're single and 65 or older, and your income is under $75,000, you’ll be able to deduct:

The standard deduction: $15,750
The senior bonus: $1,950
The new extra deduction: $6,000
That adds up to $23,700 in deductions—before we even get into anything else.

If you’re married, both age 65+, and your combined income is under $150,000, you’ll get:

The standard deduction: $31,500
The senior bonus: $3,200
The new extra deduction: $12,000 ($6,000 each)
That’s a total of $46,700 in deductions.

Now, this deduction starts to phase out once your income crosses certain thresholds:

Over $75,000 for singles
Over $150,000 for married couples

And it’s completely gone if you earn more than:

$175,000 (single)
$250,000 (married)

One more thing to keep in mind, this deduction applies whether you take the standard deduction or itemize, so you’re not boxed into a specific strategy.

Bottom line? For some (but not all) of my over 65 clients, this change could mean zero taxes on their Social Security income and a lower overall tax bill during these years.

If you’re unsure whether you qualify—or how to make the most of it—reach out and let’s take a look together.

Have questions or something I may be able to help you figure out, schedule a quick complimentary call with me by clicking HERE to see my online calendar

About the author: Rick Fingerman, CFP, CDFA, CCPS

Rick Fingerman, CFP®, CDFA®, CCPS®, is a founding and managing partner at Financial Planning Solutions, LLC. He has been helping individuals and families make sound financial decisions for over 30 years. Rick has been featured in The Wall Street Journal, Retirement Daily, Investment News, The Boston Globe, Investopedia, Financial Advisor Magazine, Financial Experts Network, and the Chicago Tribune.

Rick@PlanWithFPS.com

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All the best.

Rick Fingerman, CFP®, CDFA™, CCPS®

617-630-4978

Rick@PlanWithFPS.com

Financial Planning Solutions, LLC (FPS) is a Registered Investment Advisor. Financial Planning Solutions, LLC (FPS) provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, or legal advice. FPS only renders personalized advice to each client. Information herein includes opinions and source information that is believed to be reliable. However, such information may not be independently verified by FPS. Please see important disclosures link at the bottom of this page. Although this “conversation” above was not an actual word for word call, it does depict a recent conversation I had with someone seeking an advisor.