A new provision in recent federal tax law will phase out taxes on Social Security income for most recipients, specifically targeting Pennsylvania's 2.3 million eligible seniors. The law will ensure that 88% of seniors will not owe federal income tax on their Social Security benefits. A newly introduced senior deduction will provide $6,000 for individuals and $12,000 for married couples, increasing total deductions significantly. The legislation aims to allow retirees to retain more income and helps them manage rising costs in essential areas like housing and healthcare.
According to the White House, the new tax law will ensure that 88% of seniors who receive Social Security benefits will owe no federal income tax on that money—an increase from the previous 64% coverage. That translates to 14.2 million more seniors across the country avoiding taxes on their retirement income.
The tax change centers around a newly introduced senior deduction—$6,000 for individuals and $12,000 for married couples. Combined with the existing standard deduction, the total deductions available will rise to $23,750 for individuals and $46,700 for couples filing jointly.
Collection
[
|
...
]