A new federal senior deduction phases out federal taxes on Social Security for most recipients. The One Big Beautiful Bill creates a dedicated deduction for Americans aged 65 and older: $6,000 for individuals and $12,000 for married couples. Combined with existing deductions, total write-offs could reach $23,750 for individuals and $46,700 for couples. As a result, 88% of Social Security beneficiaries will no longer owe federal income tax on those benefits, up from 64%, adding 14.2 million retirees who pay no federal tax on that income. Vermont has about 147,000 residents aged 65+, and roughly 100,000 seniors are expected to qualify.
Under the One Big Beautiful Bill, a new senior tax deduction will phase out federal taxes on Social Security for the vast majority of recipients. In Vermont, about 100,000 seniors are expected to qualify for this targeted tax relief. Federal Tax Relief on Social Security Income The law, passed by the Trump administration, introduces a dedicated deduction for Americans aged 65 and older-$6,000 for individuals and $12,000 for married couples. Added to existing deductions, total write-offs could reach $23,750 and $46,700, respectively.
This expansion means 88% of seniors receiving Social Security will no longer owe federal income tax on those benefits. That's a jump from 64% under previous law, resulting in 14.2 million more retirees paying no federal tax on a key part of their income. Vermont's Senior Households Poised to Benefit Vermont is one of the oldest states in the country by age. Of its roughly 647,000 residents, about 147,000 are aged 65 and over-nearly 23% of the population, a
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