US Retirees Just Got a Huge Surp
Retirees were never supposed to get this deal.
Buried deep in a sprawling Trump-backed tax law, a quiet provision could hand seniors up to $450 in federal tax savings starting in 2026—without most even realizing why.
It hinges on age, income, and the way Social Security is taxed. Some will win big.
A little-known provision in President Donald Trump’s “One Big Beautiful Bill Act” could soften the tax bite for millions of older Americans.
Beginning with the 2026 tax year, filers age 65 and older can claim an extra $6,000 deduction, or $12,000 if both spouses qualify.
That extra write-off lowers taxable income, which in turn can reduce how much of their Social Security is exposed to federal tax. For a retired couple living on about $48,000 a year, analysts estimate the savings could reach roughly $450.
The benefit isn’t unlimited. It begins phasing out once single retirees pass $75,000 in modified adjusted gross income, and disappears at $175,000.
For married couples filing jointly, the phase-out runs from $150,000 to $250,000. Despite political claims of “no tax on Social Security,” the law doesn’t erase taxes on benefits;
it simply eases the burden for many. Unless Congress extends it, this senior deduction vanishes after 2028, leaving retirees again at the mercy of future tax fights.
