President Trump’s bill does not eliminate federal taxes on Social Security benefits, but it includes a new deduction for seniors that should reduce taxes for many Americans. The deduction is temporary and could impact Social Security funding. The new $6,000 deduction for individuals 65 and older is part of Trump’s “One, Big, Beautiful Bill,” although it won’t eliminate taxes on benefits. The deduction is only available until 2028 and may lead to a faster depletion of Social Security funds. Multiple significant changes to Social Security are likely needed to address long-term funding issues and prevent benefit cuts.

Read more at Nasdaq: Nearly 90% Won’t Pay Taxes on Social Security With Trump’s “One, Big, Beautiful Bill.” But Here’s the Big, Not-So-Beautiful Catch.