How the New Tax Law Will Actually Affect Your Tax Bill ($6,000 Senior Deductions, Roth, IRA) [17:31]

YouTube ^ | July 7, 2025 | The Retirement Nerds

[SunkenCiv]

The Big Beautiful Bill is making waves, and it's bringing some important changes for retirees—especially when it comes to tax deductions. In this video, I'll break down exactly how this new legislation affects retirement savings, tax breaks, and the financial future of retirees by drawing out the various deductions in context with your income. If you're wondering how the Big Beautiful Bill could impact your taxes, pension plans, or deductions, this video is for you! 

How the New Tax Law Will Actually Affect Your Tax Bill ($6,000 Senior Deductions, Roth, IRA) | 17:31 
The Retirement Nerds | 198K subscribers | 738,725 views | July 7, 2025

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TOPICS: Business/Economy
KEYWORDS: bbb; finances; retirement; seniors; socialsecurity; taxes

[SunkenCiv]

0:00 It is passed
0:42 Tax Rates
1:34 Income Calculations
2:10 HSA Implications
3:15 Standard Deductions
4:40 Senior Deductions 65+
6:50 Social Security Taxability Example
8:34 Bonus Deduction Caveats
9:10 Charitable Giving Deduction
9:40 What this Means - Standard Deduction Path
11:01 Itemized Deductions
11:30 SALT Deductions
12:11 Mortgage Interest
12:30 Charitable Contributions
13:03 Car Loan Interest
14:00 Estate Gift Tax Exemption
14:37 Retiree Tax Strategies
16:14 Where to Get Help

[SunkenCiv]

I'll cover:
Key tax deductions for retirees included in the bill
How Social Security taxability is impacted
Tax breaks specific to seniors and retirees
How these changes can help you maximize savings in retirement
What you need to do to prepare for these changes in your 2025 tax filings

[eastexsteve]

The extra 12,000 in deductions for myself and my wife will definitely help. Although, trying to use it to convert some traditional IRAs to Roth IRAs wouldn't help our bottom line as much. At least, not this year.

But remember, this tax break is only guaranteed for the next four years. Use it to your advantage ASAP.

[MeneMeneTekelUpharsin]

Retirement reference.

[Leaning Right]

We seniors got snookered again. We were promised no tax on Social Security benefits. Well, okay. But I would have been happy enough with a $6000 tax credit.

But, nope. We got a $6000 tax deduction. Which might save me $1000 or so. Yeah, it’s better than nothing. But it’s far from what I expected.

Disclaimer: I don’t blame Trump. I blame the weasels in Congress.

[plsvn]

Although, trying to use it to convert some traditional IRAs to Roth IRAs wouldn't help our bottom line as much.

Depending upon what your different sources of income are, the more IRA you convert to a Roth the less deduction you end up with since the deduction decreases as income increases beyond incomes 75k individual and 150k couple. Be careful!

[P.O.E.]

Excellent. Thank you!

[SunkenCiv]

Doesn’t the conversion to Roth have to be spread over x number of years?

[SunkenCiv]

My pleasure.

[plsvn]

Doesn’t the conversion to Roth have to be spread over x number of years?

I'm not a tax expert, but I've never heard you had to spread a Roth conversion over a period of time. I have heard of people converting EVERYTHING from an IRA to a Roth one time in one huge lump to get it over with so I doubt there's a need to do it over time.

[11th_VA]

The biggest benefit for this is at the 12% - 22% inflection point ( $96K filing jointly).

If you can keep your income below that inflection point, even after doing an IRA conversion or Mandatory Withdrawal, you will have made out well. Only pay 12% vs 22%. JMHO

[Karoo]

I get nothing because I don’t make enough to be taxed.

[SunkenCiv]

https://www.investopedia.com/roth-ira-conversion-rules-4770480

[SunkenCiv]

Thanks! Probably not going to be a problem for me. 👍