"President Trump declared an end to some taxes, stating, 'With the great Big, Beautiful Bill, we gave you no tax on tips, no tax on overtime and no tax on Social Security for our great seniors.' However, tax expert Larry Pon clarifies that seniors are still liable to pay taxes based on income thresholds dating back to 1983."
"The new law allows seniors over 65 to deduct up to $6,000 per year from taxable income, but not everyone can claim the full amount. Singles over 65 with MAGI up to $75,000 get the full deduction, while those over $175,000 receive none."
"'We have no tax on tips, no tax on overtime,' said President Trump. Pon responded, 'Well, that's true, but like anything else, you've got to meet certain conditions here.'"
The recent tax bill provides significant tax breaks, particularly for seniors, but the benefits are conditional. Seniors over 65 can deduct up to $6,000 from taxable income, depending on their modified adjusted gross income (MAGI). While President Trump claimed there are no taxes on Social Security, this is misleading as taxes still apply based on income thresholds. Additionally, the 'no tax on tips' rule only applies to voluntary tips, highlighting the complexity of the new tax regulations.
Read at ABC7 San Francisco
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