The Republican-led "One Big Beautiful Bill," which would remove Social Security taxes for the great majority of older Americans, is expected to provide substantial tax relief to Arizona seniors.
As the measure passed by a vote total of 218-214, 88% of all seniors who receive Social Security payments will not be subject to federal taxes on those benefits, according to a recent analysis by the White House Council of Economic Advisers. This is referred to by the administration as "the largest tax break in history for America's seniors."
“Under the One Big Beautiful Bill, 88% of all seniors who receive Social Security will pay NO TAX on their Social Security benefits.” Stated Congressman Abe Hamadeh.
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The announcement is a significant win for Congressional District 8 in Arizona, which has a major senior population and includes portions of the Phoenix metro area. Residents of the area have been outspoken in their support of Social Security tax reduction, especially in light of the recent burden inflation has placed on retirement budgets.
“This amounts to the largest tax break in history for America’s seniors. A HUGE victory for Congressional District Eight.” Abe Hamadeh expressed.
For the majority of those receiving them, the Act effectively eliminates Social Security taxes by giving seniors an additional basic deduction. For seniors who qualify, the House version of the measure offers a $4,000 extra deduction; the Senate version suggests $6,000. Before forwarding the completed law to President Donald Trump, the two chambers must work on a conclusion.
Both seniors who take the standard deduction and those who file their tax returns would be eligible for the short-term tax reduction, which would last from 2025 to 2028.
Arizona stands to gain a great deal from the proposed revisions because of its large senior citizen population. Americans have historically turned to the state for retirement-friendly tax laws, and this federal assistance may increase its appeal for senior citizens.
President Donald Trump made a number of promises during his 2024 campaign to remove taxes on Social Security benefits, and this law is the realization of one of those promises.
The House passed its version of the One Big Beautiful Bill Act on May 22, and the Senate recently approved its version with the higher $6,000 deduction.
In an important overnight session, Republican leaders defeated GOP holdouts and advanced the Senate version of President Trump's "Big, Beautiful Bill" early Thursday morning, bringing the House closer to a final vote on the matter.
If signed into law, the changes would take effect beginning with the 2025 tax year, providing immediate relief to millions of seniors across Arizona and the nation.
The broader legislation also includes other tax provisions, such as eliminating taxes on tips and overtime pay, as part of the Republican Party's comprehensive tax reform agenda.
