Social Security income tax deduction clears critical hurdle
New House bill changes standard deduction for seniors over 65.
On the marketing campaign path, President Donald Trump pledged to cast off federal profits taxes on Social Security advantages for seniors.
On the opposite hand, that promise went unfulfilled, largely as a consequence of legislative constraints. Social Security tax protection can't be changed via funds reconciliation, and taking away taxes on advantages would require stand-by myself legislation – one thing Congress did now not pass.
Connected: Secretary Bessent hints Social Security profits tax adjustments are coming
Taxes on Social Security advantages own been first provided below the Social Security Amendments of 1983, signed into legislation by President Ronald Reagan. The factitious took create in 1984, making a fragment of advantages discipline to federal profits tax.
With the standard promise off the desk, Republicans pursued an different: rising the customary deduction for older taxpayers.
Below present legislation for 2025, married couples submitting jointly get a outdated deduction of $30,000, plus an additional $3,200 for these age 65 and older.
What's Your Reaction?
