THIS IS A WASTE OF TIME -NSenior impact from BBB

[goodsonds56]

HAS ANYBODY GOTTEN A RESPONSE TO A QUESTION.  INVITE SAID "REAL TIME'  WHAT A JOKE.  i HAVE THINGS TO DO.

When does the bill take affect?  Will taxes for earnings in 2025 be impacted?

Will social security payments in 2025 be impacted?

What other impacts to senors?

Also are there any impacts to 401k or IRA withdrawals?

[SwapnaM]

 The new tax laws under the One Big Beautiful Bill primarily take effect in 2025 and 2026. Most of the changes in the One Big Beautiful Bill take effect on January 1, 2026, but some are retroactive and could impact your 2025 tax returns that you file in 2026.

Yes, taxes for earnings in 2025 will be impacted. The bill introduces several new temporary deductions that are effective for the 2025 tax year and are set to expire after 2028 like no tax on tips, no tax on overtime, increased SALT- itemized deductions etc.

The TurboTax blog has a great overview of the OBBB & related changes.

The bill does not directly change Social Security payments themselves. However, it does impact the taxation of those benefits for some seniors.

Additional senior deduction (2025 through 2028) - additional $6,000 deduction for taxpayers 65 and older with phaseout for MAGI over $75,000 (over $150,000 for Married Filing Jointly filers)

Increase in the standard deduction - increases the 2025 Standard Deduction to $15,750 for Single, $23,625 for Head of Household, and $31,500 for Married Filing Jointly filers. These amounts will increase with inflation each year.

The Social Security Administration has stated that the bill will significantly reduce or eliminate federal income taxes on Social Security benefits for a large percentage of beneficiaries, particularly for low- and middle-income seniors. This is because the new deduction, combined with the standard deduction, may push many seniors' provisional income below the threshold at which Social Security benefits become taxable.

You can read more about the new bill at https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions 

@goodsonds56 Thanks for the question!!

[SwapnaM]

The new law, called the "One Big Beautiful Bill Act" (OBBBA), doesn't change the basic rules for taking money out of your 401(k) or IRA. You will still have to pay regular income tax on those withdrawals.

However, the bill does offer a new, temporary $6,000 tax deduction for people age 65 and older. This extra deduction could lower your total taxable income, which might mean you pay less tax on the money you withdraw from your retirement accounts.

@goodsonds56 Thanks again!!