Lawmakers Move to Protect Social Security Retirees From Huge Tax Bill
The Motley Fool
by newsfeedback@fool.com (Christy Bieber)February 20, 2026
AI-Generated Deep Dive Summary
Lawmakers are taking action to protect Social Security retirees from facing a significant tax burden in 2026. Despite President Trump’s campaign promise to eliminate taxes on Social Security benefits, which has not been fulfilled, recent legislation aims to provide much-needed relief for seniors. The proposed law introduces a new senior deduction, offering single filers up to $6,000 and married couples as much as $12,000. However, some retirees still face a substantial tax liability due to the way Social Security benefits are taxed at higher income levels.
The current system taxes Social Security benefits for individuals earning above certain thresholds, with half of their benefits included in taxable income. This can result in unexpected and costly tax bills, particularly for those with other sources of income. The new law seeks to shield qualifying retirees from owing taxes on their Social Security benefits starting in the 2025 tax year. This change is critical because it prevents seniors from being forced to pay taxes on benefits they may have already paid into through payroll taxes.
The proposed legislation highlights the importance of understanding how taxes interact with retirement income, especially for those relying on Social Security. For many retirees, particularly those in higher income brackets, this relief could
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Originally published on The Motley Fool on 2/20/2026