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Retirement tax questions
@rkwicks1958 The changes to the tax law will not impact any of the current lines 1-11 on Form 1040.
Nothing will change your Adjusted Gross Income (AGI - Line 11), so the taxable component of Social Security (line 6b) will be unchanged.
However, if you are at least 65 years old, filing status is other than Filing Separate, then $6000 gets subtracted from Line 11 as the Senior Deductuon.
If your income is over $75,000 (or over $150,000 filing Joint), that reduces the $6000, by the part of your AGI that exceeds that limit times 6%, So for example, if your AGI is $100,000, you are at least 65 years old and filing SIngle, then 6% times $25,000 = $1500, meaning the Senior Deduction would be $4500 instead of $6,000.
Does that help?
a week ago