What the law does is to create an extra senior tax deduction of $6000 ($12,000 for joint filers), for tax years 2025 through 2028. This may reduce the tax on your SS benefit depending on your other income.
The social security administration estimates that currently, 33% of social security recipients pay some income tax on their benefit and that will be reduced to 10-12% of recipients paying some tax. Low income seniors already pay no income tax on their SS benefit. High income seniors will see no change to their tax because the bonus deduction has a high income phase-out. Middle income seniors will likely see a modest tax cut.
You still must report your benefit on your tax return, and let the tax program determine how much tax you owe, in combination with all your other income.
