One Big Beautiful Bill Brings Major Tax Relief to Seniors
A new law, dubbed the 'One Big Beautiful Bill' (OBBB), brings significant tax relief for seniors. The legislation primarily benefits those aged 65 and older with moderate or lower incomes, potentially exempting them from federal income taxes on their Social Security benefits.
The SSA announced that nearly 90% of beneficiaries could owe little to no tax with the new bonus standard deduction. This figure refers to estimates, as specific details about the OBBB's provisions remain unclear from search results.
The new law offers a temporary, income-based bonus over-65 tax deduction, not a full repeal of Social Security benefit taxes. Individuals aged 65 and older can claim a $6,000 deduction if their income is $75,000 or less, while married couples (65+) filing jointly may claim up to $12,000 if their combined income doesn't exceed $150,000. The SSA described this as a 'historic step forward for America's seniors'.
The bonus over-65 deduction is set to expire after 2028, unless Congress takes further action. It's important to note that the OBBB does not directly change Social Security taxation or make any alterations to the Social Security program itself.
The 'One Big Beautiful Bill' brings substantial tax relief to seniors, with an estimated 90% of beneficiaries potentially exempt from federal income taxes on their Social Security benefits. However, the bonus over-65 deduction is temporary and subject to income limits. Further details about the bill's provisions remain to be clarified.
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