The Social Security Administration (SSA) commended the passage of the One Big Beautiful Bill (OBBB), which is aimed at delivering tax relief to millions of older Americans.

“The bill ensures that nearly 90 percent 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 agency said in a July 3 statement.

The OBBB was passed by the House of Representatives on May 22 by a vote of 215–214. On July 1, the Senate voted to pass it by 51–50. And on July 3, the House agreed to the Senate amendment by a vote of 218–214. The bill now goes to the desk of President Donald Trump to be signed into law.

The OBBB allows seniors to deduct an additional $6,000 from their Social Security income, with that amount decreasing once income passes $75,000 for single filers and $150,000 for joint filers.

Single filers who make $175,000 or more and joint filers with an income of more than $250,000 will not be eligible for the deduction.

For a senior filing singly who receives the average Social Security benefit of $24,000 today, the maximum amount of Social Security that would be subject to federal tax (before deductions) is 85 percent of the benefit, or $20,400, according to a report from the Council of Economic Advisors (CEA).

Under the Senate version of the budget bill, this person would now have $23,750 in deductions, which includes the $15,750 standard deduction, the $2,000 additional deduction for seniors, and the new $6,000 “senior bonus” deduction, such that total deductions would exceed the senior’s taxable Social Security income.

According to the CEA report, an agency within the executive office of the president, the bill includes the “largest tax break in American history” for seniors.

Currently, out of the 58.8 million seniors who are at least 65 years old who receive Social Security income, 64 percent do not have to pay tax on these benefits, according to the report.

Once the OBBB comes into effect, 88 percent of such individuals won’t have to pay taxes on their benefits.

“The bill also increases and permanently extends the standard deduction and many other features of the 2017 Tax Cuts and Jobs Act that were otherwise scheduled to expire after this year, resulting in significant ongoing savings for most taxpayers,” the report states.

Social Security Commissioner Frank Bisignano called the passage of the One Big Beautiful Bill a “historic step forward” for the United States’ senior citizens.

“For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans,“ he said. ”By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”

Social Security Trustees’ Warning

According to a June 27 post by the nonprofit Committee for a Responsible Federal Budget (CRFB), the OBBB will “accelerate” the insolvency of Social Security.

Last month, Social Security trustees released a report warning that the trust funds for the program would be depleted by 2034, one year earlier than the previous estimate.

CRFB estimates Social Security funds to be depleted earlier, by 2032, once the OBBB is enacted.

“[The bill] would impact Social Security and Medicare indirectly, mainly by reducing the revenue collected from the income taxation of Social Security benefits, which is deposited into the Social Security and Medicare trust funds,” it said.

At the House floor before the passage of the bill, House Minority Leader Hakeem Jeffries (D-N.Y.) called the bill an “unprecedented assault” on the social safety net.

In a March 11 statement, the White House stated: “The Trump Administration will not cut Social Security, Medicare, or Medicaid benefits. Trump himself has said it (over and over and over again).”

In a July 3 statement, White House press secretary Karoline Leavitt said the bill delivers on the commonsense agenda that was voted for by almost 80 million Americans: “the largest middle-class tax cut in history, permanent border security, massive military funding, and restoring fiscal sanity.”

“The pro-growth policies within this historic legislation are going to fuel an economic boom like we’ve never seen before,” she said.

Trump said in a July 4 post on his social media platform, Truth Social, that he intends to hold a “signing celebration” for the bill at the White House on Friday evening.

“Together, we will celebrate our Nation’s Independence, and the beginning of our new Golden Age. The people of the United States of America will be Richer, Safer, and Prouder than ever before,” he wrote.

“Thank you to Speaker of the House Mike Johnson, Senate Majority Leader John Thune, and all of the wonderful Republican Members of Congress who helped us deliver on our Promises, and so much more. Together, we can do things that were not even imagined possible less than one year ago.”

Kevin Stocklin contributed to this report.

Correction: A previous version of this article’s headline misstated the percentages of the tax cut and the beneficiaries to be affected. The Epoch Times regrets the error.