Trump Administrations New Tax Rule Puts Social Security at Risk

Core Points - The One Big Beautiful Bill Act introduces a new tax break for retirees aged 65 and over, increasing the standard deduction by $6,000, allowing married couples to deduct an additional $12,000 from their income tax [2][3] - The Trump Administration's tax changes allow single filers aged 65 and over to deduct $23,750 and married joint filers to deduct $46,700, provided they meet income limits, with these tax breaks lasting until 2028 [3] Impact on Social Security - The Center for Retirement Research warns that the new tax break could negatively affect the fiscal condition of Social Security, moving the trust fund depletion date from Q3 2034 to Q1 2034 [4][6] - Although the tax break does not change the rules for taxing Social Security benefits, it reduces taxable income significantly, potentially lowering or eliminating Social Security tax for many seniors [7][8]