Tax Relief Unleashed for Seniors by Trump Act

Key Points

• The bill doubles the income limits before Social Security benefits are taxed, from $25,000 to $50,000 for individuals and $32,000 to $64,000 for married couples.
• It also raises the higher-tier thresholds used to determine when up to 85% of benefits are taxable, from $34,000 to $59,000 for individuals and $44,000 to $76,000 for couples.
• Starting in 2027, these dollar thresholds will automatically rise each year with inflation so the tax break does not lose value over time.
• The changes would first apply to the 2026 tax year, meaning seniors would notice the difference when filing taxes in early 2027.
• Because less Social Security income would be taxed, the trust funds that pay Social Security and Medicare benefits would receive less revenue, raising questions about how Congress would offset the loss.