No tax on Social Security benefits? Not quite true. [View all]

Here is an analysis from Govfacts.org:

Primary Beneficiaries: The main group to benefit are middle-income seniors aged 65 and over. These are individuals whose total income is high enough to create federal tax liability but low enough to fall below the phase-out thresholds. The White House Council of Economic Advisers estimated the new deduction would benefit 33.9 million seniors.

No Benefit for the Lowest-Income Seniors: The poorest seniors, whose total income is already below existing deduction thresholds, pay no federal income tax on their Social Security benefits. For this group, an additional deduction has no effect.

No Benefit for High-Income Seniors: Wealthier retirees with incomes above the phase-out thresholds are ineligible for the deduction and see no change in their tax liability from this provision.

Harry Sit, creator of TheFinanceBuff.com, just posted a good analysis of this issue, including a chart compiling the income phaseouts:




https://tipswatch.com/2025/07/05/no-tax-on-social-security-benefits-not-quite-true/

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Big Bullsh*t Bill ...