President Donald Trump’s presidency brought significant changes to the Social Security system, affecting millions of Americans who rely on these benefits for their livelihood. In this article, we will delve into the largest changes made under President Trump and how they impact retirees. Whether you are nearing retirement or are already collecting benefits, understanding these changes is crucial for making informed decisions about your financial future.
These changes have been met with both praise and criticism, with some arguing that they are necessary to ensure the long-term solvency of Social Security, while others see them as a threat to the program’s integrity.
The First Major Change: Taxation on Benefits
The 2017 Tax Cuts and Jobs Act introduced a provision that affects Social Security recipients. For the first time, Social Security benefits can be taxed, just like any other form of income. This means that certain benefits may be subject to taxation if you have other taxable income, such as a retirement account or investment income. (1) Social Security Administration
While this change may seem minor, it can have a significant impact on those who rely heavily on their Social Security benefits. If you are in the 24% tax bracket, and your Social Security benefits are substantial, you could be paying up to 24% in taxes on those benefits.
Surprise! Medicare B Premium Costs Increase
President Trump’s administration implemented a policy that affects Medicare Part B beneficiaries. Beginning in 2020, the Medicare Part B premium increased by $20 per month for most Medicare beneficiaries. However, these costs were later adjusted. According to the CMS Fact Sheet, these costs will be increased, but that increase is not the same for all, however it will result to the cost that will be higher. It was a result of the change in Medicare’s trust fund.
