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WASHINGTON \u2014 President Donald Trump said Wednesday night that his administration delivered sweeping tax relief for workers and seniors, declaring that Congress \u201cwrapped 12 different bills up into one beautiful bill that includes no tax on tips, no tax on overtime and no tax on Social Security<\/a> for our great seniors.\u201d<\/p>\n But while the newly signed domestic policy law does provide tax breaks tied to tips, overtime and Social Security, the reality is more limited<\/a> \u2014 and temporary \u2014 than the president\u2019s claim suggests.<\/p>\n What Trump\u2019s law actually does<\/p>\n The legislation, signed over the summer and promoted by the White House as the \u201cOne Big Beautiful Bill,\u201d creates new deductions<\/strong>, not permanent exemptions from taxation.<\/p>\n Key provisions include:<\/p>\n The law does not<\/strong> eliminate all taxation on Social Security benefits, nor does it apply universally to everyone receiving benefits.<\/p>\n How many seniors benefit?<\/p>\n According to an analysis from the Council of Economic Advisers<\/strong>, the $6,000 deduction would mean:<\/p>\n The White House has highlighted the improvement as a major win for retirees, arguing the change meaningfully reduces the tax burden on older Americans.<\/p>\n Who is left out<\/p>\n Millions of Social Security recipients do not<\/strong> qualify for the new deduction, including:<\/p>\n Those groups \u2014 which make up a significant portion of the Social Security population \u2014 receive no new tax relief<\/strong> under the law.<\/p>\n Temporary relief, not permanent repeal<\/p>\n Another major distinction: all three deductions expire after 2028<\/strong> unless Congress acts to extend them.<\/p>\n That means the law falls short of permanently eliminating taxes on tips, overtime, or Social Security \u2014 despite the president\u2019s rhetoric suggesting otherwise.<\/p>\n The bottom line<\/p>\n Trump\u2019s claim that the bill delivers \u201cno tax on Social Security\u201d reflects a partial and time-limited policy<\/strong>, not a full repeal of benefit taxation.<\/p>\n The law does expand tax relief for many seniors and workers, but millions remain excluded, and all provisions are scheduled to sunset within four years \u2014 leaving their long-term future uncertain.<\/p>\n<\/p>\n Sources:<\/strong><\/p>\n Get the latest headlines delivered to your inbox each morning.\u00a0Sign up for our Morning Edition to start your day<\/a>. FL1 on the Go! Download the free FingerLakes1.com App for iOS (iPhone, iPad)<\/a>.<\/strong><\/p>\n This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com\/fl1<\/a> or learn how you send us your local content here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON \u2014 President Donald Trump said Wednesday night that his administration delivered sweeping tax relief for workers and…\n","protected":false},"author":3,"featured_media":457407,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[64,69,9703,255,700,711,3566,67,132,68,3567],"class_list":{"0":"post-457406","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-donald-trump","10":"tag-one-big-beautiful-bill","11":"tag-personal-finance","12":"tag-retirement","13":"tag-social-security","14":"tag-social-security-administration","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us","18":"tag-ymyl"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115745368514284559","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/457406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=457406"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/457406\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/457407"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=457406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=457406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=457406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Workers may deduct tipped income from 2025 through 2028<\/strong>, capped at $25,000 per year<\/strong>. The benefit phases out for individuals earning more than $150,000 annually<\/strong>.<\/li>\n
Overtime pay is also deductible from 2025 through 2028<\/strong>, capped at $12,500 per year<\/strong>, with the same income phase-out rules.<\/li>\n
Seniors aged 65 and older<\/strong> qualify for a $6,000 deduction<\/strong>, which phases out for higher-income households and expires in 2028<\/strong>.<\/li>\n<\/ul>\n\n
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