The Social Security Administration (SSA) recently sent an email to beneficiaries that has caused major confusion. The message claimed that President Donald Trump’s new tax law would eliminate federal income taxes on Social Security benefits for most recipients.
According to the email, the law ensures that nearly 90% of people receiving Social Security will no longer pay federal taxes on their benefits. It described this change as immediate relief for seniors and said it was part of a broader plan to support older Americans. The same message was also posted to the SSA’s website.
The email was sent just before Trump’s Fourth of July event at the White House, where he signed his latest tax and spending package. The legislation, which he has called the “big, beautiful bill,” extends tax cuts first passed in 2017 and adds temporary deductions for tipped income and overtime. However, it does not remove federal income taxes on Social Security benefits.
Legal experts and former SSA officials have confirmed that the budget reconciliation process, used to pass the law, does not allow changes to Social Security. Despite this, the email and public statements from Trump have continued to suggest otherwise.
The new law includes a temporary tax deduction of $6,000 for people aged 65 and older, and $12,000 for married senior couples. Trump’s Council of Economic Advisers claims this deduction will reduce or remove the tax burden on benefits for almost nine in ten seniors. They argue this makes Social Security benefits effectively tax-free for most people.
The Council stated, “Under the One Big Beautiful Bill, 51.4 million seniors — 88% of all seniors receiving Social Security income — will pay no tax on their Social Security.” But financial and policy experts note that this is not the same as removing the tax entirely.
At events surrounding the bill signing, Trump repeated the claim that Social Security benefits will now be tax-free. Speaking at the White House, he said, “We’ve delivered no tax on tips, no tax on overtime, and no tax on Social Security for our great seniors.”
Officials from both the White House and the SSA did not respond to questions about the email or Trump’s comments. The email was signed by SSA Commissioner Frank Bisignano, who was appointed by Trump. In the message, he described the tax cuts as a major step forward for older Americans. He also said the changes showed Trump’s continued support for Social Security.
“For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans,” Bisignano wrote. “By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security.”
The message sparked backlash from lawmakers and former government officials. Critics called it misleading and said it was a misuse of a federal agency.
Congressman Frank Pallone of New Jersey said the SSA’s email was false and politically motivated. He posted on X, “Social Security benefits are still taxed. This big, ugly bill doesn’t change that. It’s disturbing to see Trump hijack a public institution to push blatant misinformation.”
Jeff Nesbit, who served as deputy commissioner of the SSA under President Biden, called the email “unbelievable” and “unconscionable.” He explained that the SSA has never issued a political statement like this before.
“I served under several presidents. This is the first time I’ve seen something like this from the SSA,” Nesbit wrote on X. “It’s a serious breach of public trust.”
Despite public claims, the law does not officially eliminate taxes on Social Security benefits. Experts advise seniors to check the actual tax rules and speak with trusted financial advisors. As of now, Social Security benefits are still subject to federal income taxes based on income level.
