The biggest change to Social Security for 2025 – The promise will probably not be kept in the end

Even when discussing Social Security income, taxes appear to be unavoidable. In actuality, however, these taxes are quite recent. In 1984, the federal government began taxing benefits for anyone whose income above a specific threshold. After Congress completely overhauled the program to prevent the Social Security trust fund from depleting, the statute was implemented.

Less than 10% of beneficiaries owed taxes on their benefits in 1984, when the new tax law went into effect. As a result, only the wealthiest Americans were required to pay. However, according to the Social Security Administration (SSA), almost 40% of beneficiaries currently owe tax on their checks because the standards have not been changed frequently enough to reflect the cost of living.

Trump s Social Security campaign promise

Republican presidential candidate Donald Trump made a strong social media statement during the election, threatening to remove the tax. Social Security taxes should not be paid by seniors. He subsequently reaffirmed the idea in interviews, making it a campaign pledge.

Though it might be more difficult and ineffectual than they expect, his following, which is made up of seniors, expects that this new approach will be accepted.

The first thing that everyone should be aware of is that Social Security funds are not subject to separate federal or state taxes; only nine US states impose taxes on Social Security income. The entire income is subject to taxation. People with no other savings are already tax-free because combined income is calculated as the sum of adjusted gross income (AGI), nontaxable interest, and half of Social Security benefits.

The tax threshold is rather high for those with some money, although some people can have to pay the smallest amounts. Seniors can use the following data from the SSA to ascertain whether or not their benefits are subject to taxes:

Taxable Portion of Benefits	0%	50%	85%
Single Filers	Under $25,000	$25,000 to $34,000	Above $34,000
Joint Filers	Under $32,000	$32,000 to $44,000	Above $44,000

Because the tax is dependent on your joint income, keep in mind that only 50% of your benefits will be taxed in any case.

The elimination of this tax is regrettably unlikely to happen anytime soon for seniors; the current deficit in Social Security would be made worse by doing away with the tax on benefits.

The harsh truth about eliminating the tax on Social Security benefits

Not only has Trump suggested doing away with this tax, but many others have as well. Earlier this year, Representative Angie Craig (D-Minn.) submitted a bill that would remove Social Security from taxable income starting in 2025. Because of the clear funding deficit in Social Security, Congress has not approved any of them.

Without congressional support, the Social Security trust funds will be depleted by 2035, leaving only 83% of scheduled payouts due, despite the Social Security Board of Trustees’ prediction of a $22.6 trillion financial deficit through 2098. Since the combined income tax contributes to the program’s funding, this would be worse if it were eliminated.

Although Trump’s idea is appealing to his followers, Rep. John Larson (D-Conn.) said in an August interview with CNBC that it is not a workable strategy. Larson told reporters, “He comes out and says he’s going to have a tax break, but he doesn’t say how he’s going to pay for that.” His plan will essentially reduce the size of the Social Security trust fund.

Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!