The One Big Beautiful Bill Act introduces a 'senior deduction,' allowing retirees in Kansas to not pay federal taxes on Social Security benefits. Individuals can claim a $6,000 deduction and married couples $12,000, resulting in 88% of seniors being exempt from federal taxes on their Social Security. The White House describes this as the largest tax break for seniors, aiming to enhance their savings. Kansas has around 518,000 seniors, with 500,000 expected to benefit from this tax exemption, leading to wage increases for workers in the state.
The OBBBA makes good on a campaign promise to end federal taxation of Social Security income. Under the law, seniors can now claim a deduction specifically for retirees: $6,000 for individuals and $12,000 for married couples where both spouses are over 65.
The White House calls it the 'largest tax break in history for America's seniors,' designed to let retirees 'save more of their money' after decades of work.
Combined with an increased standard deduction, this change means that 88% of seniors will owe no federal tax on Social Security—up from 64% under previous law.
In terms of broader financial impact, Kansas workers, senior or otherwise, are projected to see real-wage increases between $3,400 and $6,100.
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