Members of Congress recently introduced legislation that would eliminate taxes on Social Security benefits and raise the maximum taxable earnings limit.

President Trump signed his tax and spending bill into law on July 4. The White House touted the legislation as the president keeping his campaign promise to eliminate taxes on Social Security. "No tax on Social Security is a reality in the One Big Beautiful Bill," stated a press release.

But the legislation did not actually end taxes on benefits. Instead, it created a new standard deduction that will offset taxes owed on benefits for many (but not all) Social Security recipients. Specifically, about 88% of seniors (aged 65 and older) will no longer pay taxes on Social Security, up from 64% before the legislation was signed into law.

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