"It is important to clarify that Social Security remains federally taxable. However, the OBBBA created the senior deduction-$6,000 for individuals and $12,000 for married couples starting in 2025-which may incidentally offset taxable Social Security portions. The new law does remove Social Security income from the federal tax base for 88% of recipients nationwide-up from 64% under the old system. That means 51.4 million out of 58.5 million seniors across the U.S. will see their benefits fully shielded from federal taxation."
""This amounts to the largest tax break in history for America's seniors-and makes sure that after years of earning their Social Security, seniors can save more of their money," according to a White House press release highlighting the bill's impact. The deduction structure for tax year 2026 includes a $6,000 senior bonus for individual filers and $12,000 for married couples. Combined with standard and existing senior deductions, the total tax write-offs can reach up to $46,700 for eligible households."
"The 2026 tax season officially began on Jan. 26 and includes changes that could save taxpayers money on their 2025 taxes. A central provision, being called by some as the "senior deduction", aims to provide significant relief for those on fixed incomes. In Maryland, this senior deduction means an estimated 1 million retirees will no longer pay federal taxes on those benefits, according to the White House."
The One Big Beautiful Bill Act (OBBBA) introduces a senior deduction that begins affecting 2025 taxes filed in 2026. The deduction provides $6,000 for individual filers and $12,000 for married couples, and it increases the share of Social Security income removed from the federal tax base to 88% of recipients. Approximately 51.4 million of 58.5 million seniors nationally will have benefits fully shielded from federal taxation. In Maryland, about 1 million retirees could stop paying federal tax on those benefits. Social Security and SSI benefits will also receive a 2.8% Cost-of-Living Adjustment for 2026.
Read at SFGATE
Unable to calculate read time
Collection
[
|
...
]