2025 OBBB Social Security Tax Deduction will eliminate Social Security Taxes for 90% of the Recipients.
Even the Leftwing AARP agrees with Trump & AARP says:
“The bill’s broadest tax impact comes from making permanent the reduced income tax rates enacted during Trump’s first term and initially set to expire after this year. Another key provision, backed by AARP, provides targeted tax relief for older adults in the form of a $6,000 “bonus” deduction that could offset federal taxes on Social Security benefits for some.
The full deduction is available to taxpayers age 65 and older with a modified gross adjusted income (MAGI) of up to $75,000 for an individual filer and $150,000 for a couple filing jointly. (Each spouse can take the deduction, for a total of $12,000, if both are 65-plus.)
The deduction is reduced for higher earners, up to $175,000 for a single filer and $250,000 for a couple. Above those thresholds, you don’t qualify.
You can claim this new deduction even if you otherwise itemize deductions on your tax return. If you don’t, you can add it to the existing standard deduction, which is already higher for taxpayers 65 and older. But you’ll be able to do so only for the next four years — the bonus deduction is set to expire in 2029.”
