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In this upcoming tax season, I keep hearing a lot of buzz from most of my senior clients about a “social security deduction”. Well, I want to set the record straight. In my opinion, it is not a deduction, it is an exemption for anyone over 65 who has taxable income. It doesn’t matter if they are receiving their social security yet or not.
However, don’t get too excited about this if you have substantial income. There is a phase out limit of 75,000 for single taxpayers and 150,000 for married filing jointly. So, if you make over these amounts, you will not see a benefit from this. And this will generally not stop your social security from being taxed if you make enough money.
This next excerpt is taken from the IRS Website www.irs.gov Dated Revision Revised July 25:
“Deduction for Seniors
•New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
oThe $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
oDeduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
•Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.
•Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
oTaxpayers must:
include the Social Security Number of the qualifying individual(s) on the return, and
file jointly if married, to claim the deduction.”…
Full article found here:
One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors | Internal Revenue Service
