The One Big Beautiful Bill Did Not Eliminate the Taxation of Social Security - MSN - US Money
Up to 85% of your Social Security benefits can be taxable depending on your combined income. This is also known as your "provisional income." It is determined by taking your adjusted gross income (AGI), plus tax-exempt interest, and adding 50% of your Social Security benefits.
The income level that determines whether your Social Security benefits are taxable was set in 1983 and has never been adjusted for inflation. The limit is $25,000 for individuals and $32,000 for married couples. If you have income other than your Social Security benefits, you will likely owe taxes on a portion of your Social Security benefits. This does not necessarily mean you will pay any.
The One Big Beautiful bill gives an additional $6,000 non-refundable deduction to seniors 65 or older. The income limits are $75,000 for individuals and $150,000 for married couples before the $6,000 amount starts to phase out. If it does not eliminate the tax liability of your benefits, it may reduce it. This additional deduction is only available through 2028, when the new administration will have to extend it.
Amelia Josephson has written an article on the taxation of Social Security benefits. At the AMAC Foundation, we are not tax advisors, but it’s important to consider taxation as part of your retirement planning.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.