What’s Is New With Social Security?
Just a month or so ago, Congress passed the OBBBA (reconciliation) bill which extended much of the 2017 tax revisions, and adding some new provisions. One of these is now being termed the Social Security Bonus.
- This does not make Social Security tax free
- $6000 deductible for member receiving Social Security, over age 65
- Above the line deduction, so it can be taken with itemization or standard deduction
- Applies in 2025 tax year and runs through 2028
- Amount scales downward once income (MAGI) exceeds $75,000 for single; $150,000 for couple by 6% per $1000, phasing out entirely at limits shown below
- Deduction terminates for incomes over $175,000 for singles; $250,000 for couples
The article below from The Hartford Fund explains further::