Tax saving tips for MN resident

ssolfest · ‎August 06, 2025

Any Tax saving tips for 63 year old retiree living in Minnesota

evelynm

Here are some tax-saving tips tailored for a 63-year-old retiree living in Minnesota:

Minnesota offers a state tax subtraction for Social Security benefits depending on your Adjusted Gross Income (AGI) and filing status.
For tax year 2024, if your AGI is below $82,190 (single/head of household) or $105,380 (married filing jointly), your federally taxable Social Security benefits are exempt from Minnesota state income tax.

Here is a link for further details: MN tax on social security

There are other planning tips available - once you reach age 65.

TurboTax has a great tax reform calculator - here is the link: Tax Reform Calculator

Have an amazing day. Evelyn M (CPA 20+ years)
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Terri Lynn

Currently the federal taxation of Social Security benefits is calculated based on your provisional income, depending on your income level, and up to 50% or 85% of your Social Security benefits could be subject to federal taxes. This calculation has been key in calculating your overall federal tax obligation.

The One Big Beautiful Bill does provide a special deduction for seniors. It's important to note that this is a deduction, not a tax credit, meaning it reduces taxable income rather than directly reducing the taxes owed.

Here’s a summary of the new senior deduction:

Eligibility and Amounts:

A new $6,000 deduction is available for individuals aged 65 and older. For married couples where both spouses are age 65 or older, the deduction increases to $12,000.

Purpose:

This deduction is an addition to the standard deduction already available to taxpayers, further reducing the total taxable income.
It applies to all taxable income, not just Social Security benefits.

Income Phase-Outs:

The deduction starts to phase out for single filers with a modified adjusted gross income (MAGI) above $75,000.
For married couples filing jointly, the deduction begins to phase out when their MAGI exceeds $150,000.
The deduction is completely phased out for individuals with MAGI above $175,000 or married couples filing jointly with MAGI over $250,000.

Impact on Social Security Taxes:

For many seniors, this deduction will lower their taxable income enough that their Social Security benefits may no longer be subject to federal income tax.
The deduction can substantially cover the portion of benefits that would have been taxable under prior tax rules.

Limitations:

This deduction does not entirely eliminate Social Security taxation for all seniors.
Higher-income seniors who remain above the phase-out thresholds may still owe federal taxes on a portion of their Social Security benefits.

For more information see: