Fact Check: Did the Working Families Tax Cuts eliminate federal taxes on Social Security benefits?
No
The Working Families Tax Cuts are a temporary tax deduction on Social Security benefits — they don’t eliminate Social Security taxes.
Seniors 65 and older with incomes below $75,000 ($150,000 if filing jointly) are now eligible for an additional $6,000 tax deduction ($12,000 if filing jointly). For those with higher incomes, the deduction is incrementally reduced. Those with incomes higher than $175,000 ($250,000 if filing jointly) are not eligible for any deduction.
The deduction will expire after 2028 if it is not renewed.
Under existing law, single filers may owe taxes on part of their Social Security benefits when their income exceeds $25,000. Up to 85% of benefits are taxable above $34,000. For married couples filing jointly, the thresholds are $32,000 and $44,000.
This fact brief is responsive to conversations such as this one.
Sources:
U.S. Government Publishing Office | PUBLIC LAW 119–21—JULY 4, 2025
Office of the Law Revision Counsel | 26 USC 86: Social security and tier 1 railroad retirement benefits
Kipliner | Taxes on Social Security Benefits: 6 Things to Know for 2026
Center for Retirement Research at Boston College | New Tax Break for Seniors
EconoFact | The Challenges Facing Social Security
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