[Kalamata]

I was wondering about this, thought it might be of interest to some.

Question with Grok’s response:
In the “Big, beautiful Bill”, is the $4,000 Social Security a credit on tax owed?

Grok Answer:
No, the $4,000 Social Security provision in the “One, Big, Beautiful Bill” is not a tax credit but a tax deduction.

It allows eligible seniors (age 65 or older) with a modified adjusted gross income not exceeding $75,000 for single filers or $150,000 for married couples filing jointly to deduct an additional $4,000 from their taxable income.

This deduction is temporary, effective from 2025 through 2028, and applies to both itemizers and non-itemizers.

Unlike a tax credit, which directly reduces tax liability dollar-for-dollar, a deduction reduces the amount of income subject to tax, so the actual tax savings depend on the individual’s tax bracket.

[meyer]

That deduction, as described by Grok, is almost useless. As soon as you have a pension and start drawing on your retirement savings, along with SS, you’re already over the limit, at least for single filers (who generally get shafted on all tax issues).

[numberonepal]

Unlike a tax credit, which directly reduces tax liability dollar-for-dollar, a deduction reduces the amount of income subject to tax, so the actual tax savings depend on the individual’s tax bracket.

This Babylonian money magic is what makes us have incredible disdain for them.

[johnsmom]

save