This New Trump Tax Break Has a Hidden Catch Social Security Retirees Need to Know.
A new tax deduction for senior citizens (age 65 and older) is currently $6,000 for single filers and $12,000 for married couples filing jointly, enough to offset all taxes on Social Security benefits for 88% of seniors. However, the deduction begins to phase out for seniors with incomes above $75,000 for single filers and $150,000 for married couples filing jointly.
A new tax deduction is available for senior citizens aged 65 and older. The deduction is $6,000 for single filers and $12,000 for married couples filing jointly, in addition to an existing deduction. This combined deduction is enough to offset all taxes on Social Security benefits for 88% of seniors. However, the deduction phases out for seniors with higher incomes, starting at $75,000 for single filers and $150,000 for married couples filing jointly. The deduction is reduced by 6% of a taxpayer's Modified Adjusted Gross Income (MAGI) above the threshold. For example, a married couple with $200,000 in MAGI would have their $12,000 deduction reduced by $3,000.
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