"You will pay federal income taxes on your benefits if your combined income (50% of your benefit amount plus any other earned income) exceeds $25,000/year filing individually or $32,000/year filing jointly."
I got the email also, just after midnight, I think.
I am sure they have not had time to update the website. It was too late to do so after passage.
Anyway, yay!
I received it last night. There were no specifics.
I am 74 and working. Doesn’t always pay to be a 10%-er.
So your numbers mean nothing.
If they are the old numbers.
I got that too. I guess everyone on SS got one.
Just until 2028, right?
From website it seems to say there are two changes but I only know about the $6k over 65 deduction.
“The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned.”
Also, I am hard pressed to see how they determine the 90% number. $6k is far less than the average benefit and lots of seniors begin at 62.
The best that I can figure out is the following:
1. People over 65 get an additional $6,000 tax deduction (on top of existing deductions), independent of Social Security. Married couples, $12K, if both over 65 (I think).
2. It starts to go away at $75k ($150k if married) total income, including Social Security. It’s phased out completely at $175k/$250k. These levels are based on AGI (for you CPAs out there).
3. This starts this year (tax year 2025) and goes on for 4 years, through 2028 - in other words, Trump’s term in the White House.
And this is from the Republicans? They treat their older voters the same way Democrats treat blacks; just enough to vote for them again.
I’m trying to figure out if this is saying “The first $32k for married people of income is not taxed”.