Don’t Be Fooled: The Truth About the “No Tax on Social Security” Emails

Confused about the SSA email on no taxes for Social Security benefits? Rae’s Accounting breaks down what the One Big Beautiful Bill Act really says.

The Truth Behind Those “No Tax on Social Security” Emails

If you live in Florida or anywhere else in the U.S. and opened your email lately, you’ve probably seen it: a message from the Social Security Administration (SSA) proclaiming “no tax on Social Security benefits” under the new One Big Beautiful Bill Act.

We’re here to set the record straight.

First things first – YES, the email is real. But it’s also extremely misleading.

Here’s What the New Law Actually Says

✅ There is no official “no tax on Social Security” provision in the One Big Beautiful Bill Act.

✅ The email references one provision, not two – despite the use of the word “additionally” in its text.

✔️ The real provision: Seniors over age 65 are eligible for an extra deduction of up to $6,000.

Who Qualifies for This New Deduction?

• You must be 65 or older.

  If you’re under 65, even if you receive Social Security retirement benefits or SSDI, you do not qualify.

• It is not benefits-dependent.

  You don’t have to be collecting Social Security to claim it. For example, if you’ve deferred your benefits to age 70, you’re still eligible once you’re 65.
  
  

What This Deduction Is (And Is Not)

✔️ It’s a deduction, not an exclusion. Your Social Security income still needs to be reported if you are required to file a return.

✔️ It’s not refundable. If the deduction exceeds your taxable income, you won’t get a refund check for the difference.

✔️ It’s temporary. This deduction is only available until 2028 unless further legislation extends it.

✔️ It applies to both itemizers and standard deduction filers.

✔️ You must have a Social Security number to claim it.

✔️ Married couples must file jointly to use it, and both spouses need a Social Security number.

Income Limits and Phaseouts

The deduction amount decreases as your income increases:

• Phaseout begins at $150,000 for joint filers ($75,000 for others).

• Completely phased out once income hits $350,000 for joint filers ($175,000 for others).
  
  

Does This Mean Seniors Won’t Pay Taxes on Social Security?

No. It does not eliminate taxes for all beneficiaries.

According to the White House:

• Before this deduction, about 64% of Social Security beneficiaries paid no tax on their benefits.

• With this deduction, that number is estimated to rise to 88%.
  
  

Why This Matters to You

At Rae’s Accounting, serving clients across Florida and beyond, we want you to have accurate, proactive tax information. Misleading emails like this cause confusion, and we’re here to guide you with clarity and confidence.

If you’re unsure how this deduction impacts your 2025 tax planning, we’re ready to review your situation in detail.

✅ Book your tax strategy consultation today.