The OBBBA's new deduction is worth $6,000 annually, and it is on top of other deductions retirees can claim, like the standard deduction available to all taxpayers. The new $6,000 deduction is available beginning in 2025 for taxpayers 65 and over, and married taxpayers who meet the age requirements can each claim the deduction, allowing them to save a total of $12,000 on their income taxes.
Before the passage of the One Big Beautiful Bill Act, retirees started to get hit with tax on part of their Social Security benefits after their provisional income hit a specific threshold. That threshold is $25,000 for single tax filers and $32,000 for married joint tax filers. The income that's counted in provisional income for determining if you meet the threshold includes a limited amount of non-taxable income (like MUNI bond interest), all your taxable income, and half your Social Security.