"In Oklahoma, where the cost of retirement remains a concern for many households, a new federal tax policy could offer real relief. The 2026 tax season officially kicked off on Jan. 26 and includes legislative updates that could save taxpayers money on their 2025 filings. The One Big Beautiful Bill Act (OBBBA), signed into law by the Trump administration, introduces a senior deduction that is expected to eliminate federal taxes on Social Security benefits for approximately 600,000 retirees across the state."
"It is important to clarify that Social Security remains federally taxable; the OBBBA did not exempt these benefits directly. Instead, the law created the senior-specific tax deduction: $6,000 for individuals and $12,000 for married couples starting in 2025. This new deduction effectively functions to offset the taxable portion of Social Security for the vast majority of recipients. When stacked with the expanded standard deduction and preexisting age-based benefits, the total deductions available reach $23,750 for individuals and $46,700 for qualifying couples."
The One Big Beautiful Bill Act (OBBBA) creates a senior-specific tax deduction of $6,000 for individuals and $12,000 for married couples beginning in 2025. The deduction is expected to eliminate federal taxes on Social Security benefits for about 600,000 Oklahoma retirees while roughly 10% of state seniors remain ineligible due to specific criteria. Combined with an expanded standard deduction and existing age-based benefits, total deductions can reach $23,750 for individuals and $46,700 for couples. The White House estimates 88% of seniors nationwide will owe no federal tax on Social Security, up from 64%. A 2.8% COLA affects roughly 75 million Americans.
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