"The OBBBA's new deduction is worth $6,000 annually, and it is on top of other deductions retirees can claim, like the standard deduction available to all taxpayers. The new $6,000 deduction is available beginning in 2025 for taxpayers 65 and over, and married taxpayers who meet the age requirements can each claim the deduction, allowing them to save a total of $12,000 on their income taxes."
"And Social Security's tax rules remain unchanged, with retirees subject to a partial benefits tax with provisional income above $25,000 for single filers and $32,000 for married joint filers. The tax savings is limited based on income, though. It phases out at a rate of 6% for additional income over $75,000 for single filers and $150,000 for married joint filers."
A new $6,000 annual deduction for taxpayers aged 65 and over becomes available beginning in 2025. The deduction stacks with other deductions and each spouse who meets the age requirement can claim the deduction, allowing married couples to save up to $12,000. The deduction eligibility is based on age and income and is not limited to Social Security recipients. Social Security tax rules and provisional income thresholds ($25,000 single, $32,000 married filing jointly) remain unchanged. The deduction phases out at a 6% rate for additional income above $75,000 for singles and $150,000 for married joint filers.
Read at 24/7 Wall St.
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