Regarding federal income taxes on Social Security benefits
Posted
By Steve Thomas | Fountain Hills
In a letter dated Aug. 28, Chris Brant stated one of Trump’s successes was approving no taxes on Social Security. Unfortunately, Mr. Brant is incorrect; federal income taxes on Social Security benefits have not been eliminated.
Regarding the purported elimination of federal income taxes on Social Security, Public Law 119-21:
1) Gave individuals who are 65+ an additional deduction up to $6,000.
2) Deduction is available only for tax years 2025 through 2028.
3) Deduction phases out starting at income of $75,000 single, $150,000 married filing jointly and disappears completely at income of $150,000 single, $250,000 married filing jointly.
These limitations mean:
1) A person under 65 who receives Social Security benefits is not allowed to take the deduction. If the taxes were eliminated, why is that person not allowed to take the deduction?
2) A person 65 or older who does not receive Social Security benefits is allowed to take the deduction. If the taxes being eliminated are on Social Security benefits, why can that person take the deduction?
3) The calculation for how much of your Social Security benefits have to be included as income on your federal tax return has not changed. If the taxes were eliminated, there would be no need for that calculation.
The deduction can be taken off any income, not only Social Security benefits. If the taxes were eliminated, the deduction would have targeted only Social Security income.
The IRS calls the deduction “Deduction for Seniors,” not elimination of federal income tax on Social Security benefits.
Thus, Trump and the Republicans did not eliminate federal income taxes on Social Security benefits. If someone states federal income taxes on Social Security benefits have been eliminated, they are either ignorant of the facts or intentionally misinforming you.
Contact your tax advisor for your specific situation.
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