The recent tax legislation, dubbed President Trump's 'One Big Beautiful Bill,' introduces a new deduction for seniors, indirectly affecting Social Security decisions. Understanding these changes is crucial for optimizing your retirement strategy.

The exact wording of the law actually stipulates a $6,000 tax deduction for individuals aged 65 and older, likely raising the number of seniors who won't pay taxes on Social Security to 88 percent. Currently, 64 percent of seniors already don't pay taxes on Social Security benefits.