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Nothing about Social Security has changed. It can still be taxable.
For 2025 there is a new Enhanced Deduction for Seniors of $6,000 for each spouse 65 or older if you qualify. It starts to phase out if your AGI is 75,000 (150,000 Joint). Then it is reduced by 6 cents for every dollar of income over. That is listed separately on your return and is in addition to the Standard Deduction or your Itemized Deductions and is after any Social Security taxable amount on line 6b. The deduction for seniors will be allowed for 4 years, from 2025 through 2028.
It is automatic based on your age. It is not part of your Standard Deduction and not connected to getting Social Security. The new Senior Deduction (it's not a Credit) is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e. The 6,000/12,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b with any other Sch 1-A amounts. Turbo Tax automatically includes it if you qualify. If you are married you have to file a Joint return.
The OBBBA was passed through a process called budget reconciliation. That reconciliation process specifically prohibits any changes to Social Security (the Byrd Rule). So instead, a lesser workaround was to lessen the pain a bit with a "senior bonus" called the "Enhanced Senior Deduction". It does not equate to full Social Security tax refief for many people, but it does help lower the overall tax burden of seniors and got around the Byrd Rule. It provides some extra spending money, especially for married couples. Hopefully, additional tax relief can be in future legislation.
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