In a recent development, the Social Security Administration (SSA) has come under fire for sending a misleading email to beneficiaries. The message inaccurately claims that President Donald Trump’s extensive tax cuts and spending legislation will eliminate federal income taxes on Social Security benefits for the majority of recipients. The email, which has been shared by several beneficiaries with NBC News, states, “The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation’s economy.”
The email further asserts that the new law includes a provision to remove federal income taxes on Social Security benefits for most beneficiaries, effectively offering relief to both individuals and couples. An identical announcement was also posted on the SSA’s website on the same day that numerous beneficiaries reported receiving the email. This communication coincided with Trump's preparations to sign his significant tax cuts and spending package, which he has referred to as the “big, beautiful bill,” during a ceremony at the White House on July Fourth.
The tax and spending package sent to Trump’s desk by Congress extends the tax cuts he initiated in 2017 and introduces a temporary tax deduction for earnings from tips and overtime. However, it does not abolish federal taxes on Social Security benefits. The process known as budget reconciliation, which Senate Republicans utilized to pass the bill while circumventing a Democratic filibuster, does not permit amendments to Social Security.
Interestingly, the Trump package does include a temporary tax deduction of up to $6,000 for seniors aged 65 and older, and $12,000 for married seniors. The President's Council of Economic Advisers claimed that nearly 90% of seniors would not owe any federal taxes on their Social Security benefits due to this new deduction. “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,” the council stated.
Despite this assertion, Trump has been accused of promoting misinformation regarding the tax implications for Social Security benefits. During a rally in Iowa and at the bill-signing ceremony, he reiterated the false claim that the legislation would eliminate taxes on Social Security. “After this kicks in, our country is going to be a rocket ship economically,” Trump proclaimed, emphasizing the lack of taxes on tips, overtime, and Social Security for seniors.
Both the White House and the SSA have not responded to requests for comment regarding the misleading email. Frank Bisignano, the SSA Commissioner appointed by Trump, described the new tax cuts as a “historic step forward for America’s seniors,” asserting that they significantly reduce the tax burden on benefits. He stated, “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans.”
However, former SSA officials and congressional Democrats have expressed shock and disapproval at what they consider a highly politicized message being disseminated by a federal agency. “This email went to every Social Security subscriber and every word of it is a lie. Social Security benefits are still taxed. This big, ugly bill doesn’t change that,” remarked New Jersey Rep. Frank Pallone, the highest-ranking Democrat on the Energy and Commerce Committee. He criticized the use of a public institution to propagate misinformation.
Jeff Nesbit, a former top SSA official during the Biden administration, described the political emails as “unbelievable” and “unconscionable.” He stated, “The agency has never issued such a blatant political statement,” highlighting the unusual nature of the email sent under current leadership. “The actions taken by Trump and those running the SSA are unconscionable,” he added.
It is important to note that more than 70 million retirees, survivors, and individuals with disabilities rely on Social Security benefits, making the accuracy of communications from the SSA crucial for their financial well-being.
