The One Big Beautiful Bill Act has eliminated federal taxes on Social Security benefits for 88% of seniors, a significant increase from 64%. This tax change is expected to provide substantial savings to around 51.4 million seniors. In Illinois, approximately 2 million retirees stand to benefit, aligning with national statistics. Additionally, the bill includes a senior-specific deduction of $6,000 for individuals and $12,000 for couples over 65. Real-wage gains in Illinois could further enhance financial relief, with increases in take-home pay projected between $7,600 and $11,000.
According to the U.S. Treasury, the One Big Beautiful Bill increases the standard deduction and adds a new senior-specific deduction of $6,000 for individuals and $12,000 for married couples over 65.
Illinois had a total population of 12.5 million, of which 2.2 million-or 17.6%-were aged 65 and over. This group makes up 3.7% of the national senior population.
The White House estimates that 88% of all seniors who receive Social Security-around 51.4 million people-will now pay no federal tax on those benefits.
Illinois seniors are expected to save more effectively as they will no longer pay taxes on Social Security income, benefiting approximately 2 million retirees.
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