01/19/2026
Two laws enacted in 2025 may shift how Social Security benefits are taxed in the coming year. The recently passed One Big Beautiful Bill introduces a new $6,000 senior deduction for individuals age 65 and older, available through 2028. Eligibility depends on income: the full deduction applies up to $75,000 for single filers and $150,000 for married couples, and phases out above those levels.
At the same time, the Social Security Fairness Act may increase taxable income for some retirees by restoring benefits to pensioners who previously saw reductions or exclusions. Some beneficiaries will also receive lump-sum payments dating back to January 2024, which may raise the portion of their benefits subject to federal tax.
Tax forms SSA-1099 and SSA-1042S reflecting 2025 benefits will be available online beginning December 25, with mailed copies expected by late January. These forms outline total benefits received for the year and help determine any federal tax owed.
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New laws enacted in 2025 may impact just how much federal taxes Social Security beneficiaries owe on their benefit income. Here's how experts say to plan.