- Jul 27, 2004
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If their lips are moving, they are lying. The sales pitch, no tax on social security. Wrong.
SS is still taxed. What has been done is there is an additional deduction of $6,000 per person but only for the next 4 years. This deduction can be claimed if you use either standard or itemized deductions, and are 65 years of age or older.
Example: (for married couple filing jointly)
Social Security income = $40,000
Other income, IRA, etc. = $40,000
Total income = $80,000
Standard deduction = $31,500 (up from 29,200 in 2024)
Existing deduction for those 65+ = $3,200 (1,600 each, this is not new) (If filing single this has been increased to 2,000)
Now your AGI = $45,300
New deduction for those 65+ = $12,000 (6,000 each, but this expires in 2028)
Now your AGI = $33,300
23,850 of that is taxed at 10% = 2,385
The remaining 9,450 taxed at 12% = 1,134
Total taxes = 3,519
Without the additional $6,000 per person deduction total taxes due would be $4,959, so it does save you $1,440 but your SS is still being taxed.
Trump inflation is expected to cost the average household an estimated $2,500, so there is that...
If SS was actually not taxed, you would only owe $530 in taxes.
Another change of note is that you can deduct up to $2,000 in charitable donations, even if you take the standard deduction.
SS is still taxed. What has been done is there is an additional deduction of $6,000 per person but only for the next 4 years. This deduction can be claimed if you use either standard or itemized deductions, and are 65 years of age or older.
Example: (for married couple filing jointly)
Social Security income = $40,000
Other income, IRA, etc. = $40,000
Total income = $80,000
Standard deduction = $31,500 (up from 29,200 in 2024)
Existing deduction for those 65+ = $3,200 (1,600 each, this is not new) (If filing single this has been increased to 2,000)
Now your AGI = $45,300
New deduction for those 65+ = $12,000 (6,000 each, but this expires in 2028)
Now your AGI = $33,300
23,850 of that is taxed at 10% = 2,385
The remaining 9,450 taxed at 12% = 1,134
Total taxes = 3,519
Without the additional $6,000 per person deduction total taxes due would be $4,959, so it does save you $1,440 but your SS is still being taxed.
Trump inflation is expected to cost the average household an estimated $2,500, so there is that...
If SS was actually not taxed, you would only owe $530 in taxes.
Another change of note is that you can deduct up to $2,000 in charitable donations, even if you take the standard deduction.
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