Good news for Social Security recipients! Starting in 2026, older Americans could see bigger federal tax breaks on their benefits due to President Trumps One Big Beautiful Bill Act. This act adds up to $6,000 extra to the standard deduction for folks aged 65 and older. Single filers over 65 might claim up to $23,750 on their 2025 returns, while couples could go as high as $46,700. These breaks run through 2028. Currently, the federal government taxes up to 85% of Social Security benefits for incomes over $25,000 for singles or $32,000 for couples. However, lower earners skip this tax entirely. Many retirees welcome this relief, as it could mean thousands more in their pockets each year. On the state side, things vary. Eight states still tax benefits this year, but low-income folks often get exemptions. However, West Virginia drops its tax on Social Security income entirely in 2026. Colorado even lets some seniors deduct federal taxes from their state bill. As more states eye these changes and federal perks kick in, millions of seniors stand to keep more of their hard-earned benefits heading into retirement.

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