"The new law did not exempt these benefits directly; instead, it created the senior deduction: $6,000 for single filers and $12,000 for married couples filing jointly-if both spouses are 65 or older. This is layered on top of a boosted standard deduction and existing age-based deductions, effectively shielding the Social Security income of most older Americans from federal taxes. Combined, these changes mean 88% of seniors nationwide will no longer pay federal tax on their Social Security benefits, a sharp rise from 64% under prior law."
"The 2026 tax season officially kicked off on Jan. 26, bringing updates that could lower the tax bill on your 2025 filings. At the heart of the law is the senior deduction, a new tax benefit that some are calling a "senior bonus." In Louisiana, roughly 700,000 retirees are expected to qualify for this provision, which is designed to provide financial relief to those living on fixed incomes."
The One Big Beautiful Bill Act creates a senior deduction of $6,000 for single filers and $12,000 for married couples filing jointly if both spouses are 65 or older. The deduction stacks with a boosted standard deduction and existing age-based deductions, substantially reducing federal tax on Social Security for many retirees. Combined changes mean 88% of seniors nationwide will not pay federal tax on Social Security, up from 64% previously. For 2026 tax filings, total deductions can reach $23,750 for single seniors and $46,700 for joint filers. Approximately 700,000 Louisiana retirees are expected to qualify, aiding fixed-income households amid rising living costs. The 2026 COLA raises benefits by 2.8%.
Read at SFGATE
Unable to calculate read time
Collection
[
|
...
]