Tax on social security

[skyhawk324]

I was unable to find how the no tax on Social Security will affect me. I know that there will still be the additional premium on Medicare if the income is above a certain level, or at least I think that is still the case

[xmasbaby0]

"no tax on Social Security" is incorrect.   If you are a senior 65 or older, you may get an extra deduction of up to $6000 in addition to your standard deduction, but your Social Security is not automatically "tax free" now.  If you file a joint return and both spouses are 65 or older, the extra deduction is up to $12,000 for a joint return.

[K M W]

The One Big Beautiful Bill (OBBB) does NOT make any changes to how social security is taxed.  Rather, the OBBB provides a new, temporary deduction for individuals aged 65 and older. This deduction is $6,000 per eligible individual ($12,000 for a married couple where both spouses qualify). This is in addition to the standard deduction already available to seniors.

So, whether a person is currently receiving social security or not (and the determination of how much of your social security is taxable)  is irrelevant to the new tax deduction - as long as you meet the age requirement (age 65 or older), and you do not exceed the income thresholds (the additional deduction begins to phase out when Modified Adjusted Gross income exceeds $75,000 for single files, or $150,000 for married couples filing jointly), then you will be eligible for the additional deduction.  Note that this new deduction for seniors is a temporary provision, effective for tax years 2025 through 2028.

The OBBB does not directly alter the existing structure of the Income-Related Monthly Adjustment Amount (IRMAA) for Medicare. IRMAA is the additional premium that beneficiaries with higher incomes pay for Medicare Part B and Part D.  So yes, there will still be the additional premium for Medicare if your income is above certain amounts.

[DoninGA]

There is no cap on Medicare taxes that are withheld from wages. 

For 2025, the maximum amount of earnings subject to Social Security tax, also known as the wage base limit, is $176,100

Standard deductions for 2025

Single - $15.750 add $2.000 if age 65 or older
Married Filing Separately - $15,750 add $1,600 if age 65 or older
Married Filing Jointly - $31,500 add $1,600 for each spouse age 65 or older
Head of Household - $23,625 add $2,000 if age 65 or older

New Bonus Standard Deduction (OBBB):
An additional $6,000 deduction for taxpayers 65 and older.
This is per eligible individual, meaning a married couple both over 65 could get $12,000.
Important: This bonus deduction is temporary, lasting from 2025 through 2028.
Income limitations: It phases out for taxpayers with modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers.