Updated

Updated · AS USA · Jul 21

Republican Tax Bill Grants $6,000 Senior Deduction, Cutting Social Security Tax Hit to 12%

Updated

Updated · AS USA · Jul 21

Republican Tax Bill Grants $6,000 Senior Deduction, Cutting Social Security Tax Hit to 12%

1 articles · Updated · AS USA · Jul 21

Only about 12% of Americans 65 or older are expected to owe federal tax on Social Security benefits after a $6,000 deduction created by the 2025 Republican tax bill, according to a White House analysis.
The deduction applies to adjusted gross income below $75,000 for single filers and $150,000 for couples, then phases out and disappears above $175,000 and $250,000 respectively.
The break lasts only through fiscal 2028 unless Congress extends it, leaving older rules in place under which roughly half of recipients paid tax on benefits in 2021.
Those rules stem from 1983 income thresholds that were never indexed to inflation, and the Congressional Budget Office projects 56% of beneficiaries could face taxes on benefits by 2050 if the deduction expires.

Sources

An expiring tax cut and looming benefit cuts threaten your retirement. How can you financially prepare for Social Security's uncertain future?

A new tax break for seniors accelerates Social Security's shortfall. What is the permanent fix before the 2029 deduction expires?

Social Security's tax thresholds are stuck in 1983, hitting more retirees each year. Why has this core problem never been fixed?

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