The bill passed by the House would raise the standard deduction by up to $4,000 for those 65 and over, starting in 2025 to 2028.

Additionally, President Trump last month pushed Congress to approve a "big, beautiful" tax and spending bill that fulfills several other campaign promises. "In the coming weeks and months, we will pass the largest tax cuts in American history — and that will include no tax on tips, no tax on Social Security, and no tax on overtime," he said.

No federal taxes on Social Security benefits. That was one of the key campaign promises made by Donald Trump when he ran for president last year. When the president called for "one big beautiful bill" to enact his domestic policy agenda, many retirees might have expected that this tax cut would be one of the prominent changes included.