A new federal law in the United States has introduced a significant policy shift for millions of retirees. Known as the One Big, Beautiful Bill, the legislation aims to ease the financial burden on older Americans by eliminating federal income taxes on most Social Security benefits. The law has been formally approved by the Social Security Administration (SSA), which oversees retirement and disability benefits for more than 70 million Americans.
This measure has been described by the SSA as a landmark reform. According to Commissioner Frank Bisignano, the bill represents a historic improvement in the way seniors are supported through federal programs. It also aligns with former President Donald J. Trump’s longstanding pledge to safeguard Social Security, signaling a policy direction that prioritizes the post-retirement financial security of American citizens.
Federal Income Taxes Removed for The Majority of Recipients
The most significant feature of the One Big, Beautiful Bill is the removal of federal income tax obligations for approximately 90% of Social Security recipients. This change applies to retirement benefits, and in many cases, to disability and survivor payments as well. The goal is to provide immediate relief to seniors who have long expressed concern over being taxed on benefits they spent decades earning.
The SSA emphasized that this tax change will apply to both individual and married beneficiaries who meet standard eligibility criteria. The administration anticipates that most recipients will notice a reduction in federal tax obligations as soon as the new rules are implemented.
Improved Standard Deduction for Taxpayers Over 65
In addition to eliminating federal taxes on benefits, the bill includes provisions to increase the standard deduction for seniors aged 65 and older. This move is designed to further reduce the tax burden on older Americans, particularly those with fixed or limited incomes.
The expanded deduction is intended to reflect the growing cost of living and health-related expenses faced by retirees. According to SSA statements, the measure is structured to allow seniors to retain a larger portion of their income, particularly those who rely heavily on Social Security as a primary source of financial support.
Informational Outreach Planned by The SSA
The Social Security Administration has committed to launching a comprehensive public information campaign to ensure that eligible Americans understand how the law affects them. The agency will provide clear guidance to recipients of retirement, survivor, and Social Security Disability Insurance (SSDI) benefits. This includes updated instructions regarding how benefits will be calculated and how taxes will be handled in the future.
The SSA has emphasized the importance of accurate communication, especially for those nearing or entering retirement. According to the agency, only individuals who have worked for at least 35 years in jobs covered by Social Security and filed for benefits at Full Retirement Age will receive full payments without penalty. These existing rules remain unchanged under the new law.
Commissioner Bisignano Praises Legislative Milestone
In a public statement, Frank Bisignano, Commissioner of the Social Security Administration, described the legislation as a “historic step forward for seniors in America.” He acknowledged the agency’s role in delivering economic security for nearly 90 years and positioned the bill as a continuation of that mission.
Bisignano also highlighted the administration’s efforts to protect the dignity of retirement for American workers. “This law is a promise kept,” he stated, referring to policy goals expressed during Donald J. Trump’s presidency. According to the SSA, the law is designed not only to provide tax relief but to reaffirm a national commitment to retirement stability and fairness.
Eligibility Rules Remain Unchanged
Despite these tax-related changes, the SSA confirmed that eligibility rules for collecting Social Security benefits remain in place. Individuals must have a work history of 35 years in Social Security-covered employment and must apply at the designated Full Retirement Age to receive the maximum monthly benefit.
Those who file early, including at age 62, or who have worked fewer than the required years, will continue to face standard benefit reductions. The new law affects only the tax treatment of benefits—not the amount of monthly payments for those who do not meet full eligibility criteria.