President Donald Trump’s ‘Big Beautiful Bill’ introduced a way for senior citizens, above 65, to earn more in social security income in 2026. Thanks to the temporary bonus part of Trump’s plan, senior citizens will get to plan their finances more feasibly. This is especially because social security would be less likely to be taxed as a result of this bill.
According to CNBC, up to $6000 could be deducted from a senior citizen’s tax claims. In the case of a married couple, about $12,000 worth of deductions can be made as part of the temporary bonus. And, has a window of 4 years and will expire in 2028.
President Trump and Senate Republicans promised a tax break for seniors – and that’s exactly what we delivered.
Thanks to the Big, Beautiful Bill, seniors will have $6k MORE in their pocket! https://t.co/1YsMRY4dg3
— Senate Aging Committee (@SenateAging) July 31, 2025
Apart from the strict age factor, those eligible for the bonus must have an income below $75,000 if they’re single. Married couples’ gross income, on the other hand, has to collectively be below $150,000. If the income crosses those thresholds, it will reportedly phase out.
CBS cited an advocacy group called ‘AARP’ and revealed that each senior citizen could get $670, depending on the aforementioned eligibility criteria. AARP’s senior vice president of government affairs, Bill Sweeney, claimed that the benefits of Trump’s Big Beautiful Bill for senior citizens could be “vast.”
The tax breaks come amid the chaos of those unable to afford basic healthcare, food, and necessities. Nancy LeaMond, AARP’s Group Chief Advocacy and Engagement Officer, commented on the benefits of Trump’s bill.
LeaMond claimed that while the average might not be a lot, it still majorly helps those struggling to make ends meet. She stated, “We can tell you based on our conversations with our members that it is a very, very significant help to them.”
Social Security checks are getting a 2.8% COLA boost in January, about $56 more per month. Medicare premiums, taxes, and drug costs will determine how much retirees keep, making it a smart time to review benefits.#fifocusfriday #fiplanpartners
https://t.co/h8dKinlp6Y
— Greg Powell (@fiPlanPartners) January 9, 2026
Initially, the plan was to eliminate social security taxes. However, that wasn’t possible, and that is because of a law which was reportedly formed through a process called ‘reconciliation.’
Under a rule called the ‘Byrd Rule,’ reconciliation prevents those in power from choosing to change social security benefits or dedicated funding. However, the legal process has been used in the Affordable Care Act and the American Rescue Plan Act.
The Social Security Administration recently announced a 2.8% increase in COLA for 2026 on its official website. According to the website, the average benefit is set to increase by $56 every month. Reportedly, 71 million social security beneficiaries will be able to observe the increase in January 2026 alone.
New year, new savings: Americans 65 and older can now qualify for a bonus tax deduction. Our SVP John Hishta explains how it works and other ways we’re fighting to save YOUR hard-earned money. https://t.co/nycsJahVoU pic.twitter.com/PewPt08dRC
— AARP Advocates (@AARPadvocates) January 15, 2026
While this may appear promising, experts disagree with the 2.8 % increase, claiming it is insufficient. AARP cited a survey conducted last year in September 2025, when the COLA was 3%. The results revealed that even at that percentage, people were unable to keep up with the growing costs.
The Trump administration is hoping that the aftermath of the ‘big beautiful bill’s’ senior bonus would balance out the COLA spike. This is also because of the spike in Medicaid premiums, which have risen to $202.90 per month. So far, there are pros and cons to Trump’s tax break for seniors. With proper planning, seniors can save up greatly for their future.
