"Last year, the One Big Beautiful Bill Act was signed into law in July, which included a new $6,000 senior tax deduction. As a result, most seniors who receive Social Security now don't have to pay taxes on their benefits because their income is reduced to a low enough level where those taxes won't apply."
"Not only do those taxes still exist, but many higher earners still have to pay them. That's because the new senior tax deduction phases out for seniors with higher incomes, and some very wealthy retirees would still be liable for those taxes."
"The new $6,000 senior tax deduction is only applicable to tax years 2025 through 2028. There's a chance lawmakers could opt to extend that provision. But unless they do, taxes on Social Security benefits could come back into the picture for seniors who aren't required to pay them this year."
A significant change in tax law has exempted most seniors from paying taxes on Social Security benefits through a new $6,000 senior tax deduction. This deduction reduces income levels for many seniors, allowing them to avoid taxes. However, taxes on Social Security benefits remain for higher earners, as the deduction phases out for those with greater incomes. The new deduction is only valid from 2025 to 2028, and without an extension, taxes could return for some seniors in the future.
Read at 24/7 Wall St.
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