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gnsbirds2
New Member

Were taxes on Social Security income completely eliminated with passage of President Trump's "Big Beautiful Bill?"

If taxes on Social Security income were eliminated, would that be for the entire 2025 tax year of just since the bill was passed and signed?
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Were taxes on Social Security income completely eliminated with passage of President Trump's "Big Beautiful Bill?"

Nothing about Social Security has changed. It can still be taxable.  There is a new Enhanced Senior Deduction.


The maximum deduction is $6,000 for each person 65. The phaseout is 6% of the amount by which MAGI exceeds $75,000 for single or $150,000 for married filing jointly (MFJ). The MAGI is normally the same as your AGI but with some Foreign items from Form 2555 added back in. On a joint return the phaseout is calculated separately for each person, so the 6% phases out for each spouse. This deduction is intended to provide tax relief for seniors and is in addition to the existing Standard Deduction or your Itemized Deductions. Expires December 31, 2028.


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. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e. Turbo Tax automatically includes it if you qualify.


IRS Schedule 1-A
https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf

 

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Were taxes on Social Security income completely eliminated with passage of President Trump's "Big Beautiful Bill?"

New $6,000 "Bonus" Deduction (2025-2028)
  • Amount: Eligible single filers can claim up to $6,000. Married couples filing jointly can claim up to $12,000 if both spouses qualify ($6,000 per person).
  • Eligibility: You must be 65 or older by December 31, 2025, and have a valid Social Security number.
  • Availability: This deduction is available whether you take the standard deduction or itemize your deductions.
  • Income Limits (Modified Adjusted Gross Income - MAGI): The deduction starts to phase out if your MAGI exceeds certain thresholds and is completely eliminated at higher levels:
    • Single filers: Phase out begins over $75,000 MAGI, fully eliminated at $175,000.
    • Married couples filing jointly: Phase out begins over $150,000 MAGI, fully eliminated at $250,000.
    • Duration: This provision is temporary and currently set to expire after the 2028 tax year. 

Were taxes on Social Security income completely eliminated with passage of President Trump's "Big Beautiful Bill?"

Nothing about Social Security has changed. It can still be taxable.  There is a new Enhanced Senior Deduction.


The maximum deduction is $6,000 for each person 65. The phaseout is 6% of the amount by which MAGI exceeds $75,000 for single or $150,000 for married filing jointly (MFJ). The MAGI is normally the same as your AGI but with some Foreign items from Form 2555 added back in. On a joint return the phaseout is calculated separately for each person, so the 6% phases out for each spouse. This deduction is intended to provide tax relief for seniors and is in addition to the existing Standard Deduction or your Itemized Deductions. Expires December 31, 2028.


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. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e. Turbo Tax automatically includes it if you qualify.


IRS Schedule 1-A
https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf

 

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