Federal Social Security Tax Rules Stay Unchanged for 30 Years as $6,000 Deduction Offers Temporary Relief
Updated
Updated · The Globe and Mail · Jun 18
Federal Social Security Tax Rules Stay Unchanged for 30 Years as $6,000 Deduction Offers Temporary Relief
1 articles · Updated · The Globe and Mail · Jun 18
Summary
Federal taxes on Social Security benefits have not been abolished, despite rumors tied to Trump's "big, beautiful bill," and the rules have remained unchanged for more than three decades.
Provisional income still determines whether benefits are taxed: singles face thresholds at $25,000 and $34,000, while married filers face $32,000 and $44,000.
A new $6,000 deduction for seniors 65 and older can lower overall tax bills through the 2028 tax year, but it does not change how much of Social Security benefits is taxable.
Eight states still tax some Social Security benefits—Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont—though many offer income-based exceptions.
Because the federal thresholds are not indexed to inflation, more seniors are being pulled into benefit taxation even as most states have moved away from it.