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How the $6,000 ‘senior deduction’
in the big GOP bill will work

Original Article

Posted By: ladydawgfan, 7/3/2025 8:37:17 PM

President Donald Trump’s push to help Americans over the age of 65 may be possible with a provision in the “big, beautiful bill,” which passed the Senate on Tuesday. Trump’s Council of Economic Advisers noted that the bill “delivers on President Trump’s promise of No Tax on Social Security,” providing the “largest tax break in American history for our nation’s seniors.” “The One Big Beautiful Bill provides a new bonus deduction of $6,000 for seniors age 65 and older ($12,000 for married seniors) beginning in 2025,” the overview explained, noting the provision, which does not wipe out taxes on Social Security, would be in addition to current standard deductions.

Comments:

My dad is 91. This will help him immensely.

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Reply 1 - Posted by: DVC 7/3/2025 8:48:14 PM (No. 1972704)
Won't help us, the limits kick in with my pension and SS. But that's not a complaint, it will help many who only have SS.
34 people like this.

Reply 2 - Posted by: buckeye1 7/3/2025 9:17:54 PM (No. 1972709)
This is the first I've heard of this deduction. Is this in addition to the Sosh Security exemption?
11 people like this.

Reply 3 - Posted by: MOBeef4u 7/3/2025 9:34:53 PM (No. 1972712)
Trying to make sense of this but my question is are SS benefits still going to be taxed? Not a hard question.
22 people like this.

Reply 4 - Posted by: DVC 7/3/2025 9:43:11 PM (No. 1972714)
Re #3, yes, but with the extra deduction so many at the lower end with no other income will pay no taxes.
23 people like this.

Reply 5 - Posted by: Ketchuplover 7/3/2025 9:52:12 PM (No. 1972719)
Still don't understand it. But - I just started drawing SS last year. We'll see what my tax accountant says next spring.
14 people like this.

Reply 6 - Posted by: WV.Hillbilly 7/3/2025 11:57:40 PM (No. 1972731)
#3 No. This is the substitute. And it expires in 2028.
9 people like this.

Reply 7 - Posted by: anniebc 7/4/2025 1:00:21 AM (No. 1972738)
If it doesn't wipe out taxes and it has an end date, what's the point? Big beautiful maybe no tax, temporary bonus deduction. I hate taxes! I don't collect SS, so keeping it moving. . .
8 people like this.

Reply 8 - Posted by: Sorosisbehindit 7/4/2025 7:46:10 AM (No. 1972787)
It will save us about $2600. (a married couple with income over 100,000 and under 200,000 in the 22% bracket) I'll take it. For those with an attitude about this, keep in mind that I already paid tax on my income before they took this social security tax out of my check for years and years. They set it aside and made interest on it (yea right!) and now they are giving it back to me. I don't think any of it should be taxes until it reaches the total that I contributed, but I know that is a fantasy. Regardless, it will allow me to take out 12,000 extra from my 401k without feeling the pinch. And I do prefer to do that while tax rates are low. If democrats ever get back in charge the tax rates will jump up and I will wish I had gotten more out. (be careful not to hit 150,000 or you will start to lose the 12,000 benefit) I was a CPA in my prior life, but please check these details with your accountant first, because I am leaning on articles like this for details.
32 people like this.

Reply 9 - Posted by: Linda in Seattle 7/4/2025 8:19:48 AM (No. 1972806)
Is it jut me? Why does Congress have to make things so difficult/confusing? The promise was no tax on Social Security. Yet, that's not what Congress has done. The Fed has had the use of workers' SS contributions for decades. So, when those contributors retire, why should they have to even report the income they get from SS? The same thing with tips and overtime pay. A "senior deduction" isn't what we were told.
22 people like this.

Reply 10 - Posted by: NYBruin 7/4/2025 8:34:25 AM (No. 1972813)
Vote buying, pure and simple. A scheme worthy of Joe Biden! I'd rather have meaningful deficit reduction. . .
8 people like this.

Reply 11 - Posted by: JHHolliday 7/4/2025 8:47:48 AM (No. 1972824)
At least it will be a tax "cut" of sorts for a lot of people. Of course, that's until the feds rob the so-called and non-existent SS "trust fund" again. I have always said whenever I hear someone say that congress is spending money like a drunken sailor, I tell them that at least drunken sailors are spending their own money, not ours.
18 people like this.

Reply 12 - Posted by: franq 7/4/2025 8:53:38 AM (No. 1972829)
It should help us. Let seniors keep their money. What a novel idea.
6 people like this.

Reply 13 - Posted by: felixcat 7/4/2025 9:05:00 AM (No. 1972839)
All the complications of Social Security, your total retirement income and how it affects your SS, taxes on it, exemptions, etc - just more reasons to hate the Dems, especially FDR with creating SS. Just return to me all the FICA taxes I have been forced to pay over the decades and let me invest it myself. sigh....
11 people like this.

Reply 14 - Posted by: Dodge Boy 7/4/2025 9:37:49 AM (No. 1972856)
Having our SS benefits double-taxed has been a real burr under my saddle. I hope wife and I will benefit from it comes tax season.
7 people like this.

Reply 15 - Posted by: earlybird 7/4/2025 9:45:39 AM (No. 1972860)
This deduction is for all seniors over 65, not just those on SSA.
6 people like this.

Reply 16 - Posted by: David Key 7/4/2025 9:47:37 AM (No. 1972861)
You take what you can get. You want no taxes on SSI fire about a dozen democratic representatives and elect a dozen Maga republicans.half a dozen democratic senators too.
9 people like this.

Reply 17 - Posted by: Vaquero45 7/4/2025 10:04:50 AM (No. 1972864)
This won’t help me much, but I’ll take what I can get. Let’s start working to unseat more Democraps in ‘26 and ‘28 so a veto-proof Republican majority can REALLY cut taxes and spending.
11 people like this.

Reply 18 - Posted by: pc1eszm 7/4/2025 11:04:26 AM (No. 1972899)
#8 Hubs is over 65-I have a couple years to go. Do we qualify for single or married deduction? This could have been made so much simpler. TIA.
4 people like this.

Reply 19 - Posted by: Califedup 7/4/2025 12:17:10 PM (No. 1972932)
Let’s cut through the usual Congressional crap - Bottom line one of President Trump’s campaign promises was no more income tax on Social Security income which never should have been put into law in the first place. This another betrayal by the republicans in both houses in Congress of the loyal voters who gave them a majority. This is not acceptable. To hell with their shell game “deductions”. The tax on Sosial Security should have been repealed. Period. Full Stop. Email or call your cowardly republican Congress traitors and tell them to introduce a stand alone single bill repealing the income tax on Social Security. We have to stand up and demand that they fulfill their duty to us or it will be screw and betray we American citizens as usual. We can no longer afford to accept the corrupt and traitorous status quo.
10 people like this.

Reply 20 - Posted by: TXknitter 7/4/2025 1:42:31 PM (No. 1972960)
I am not happy with all the games. There should be no taxes on Social Security. Zero. None. Period. We can afford billions in arms to Quatar.
7 people like this.

Reply 21 - Posted by: KTWO 7/4/2025 2:09:52 PM (No. 1972965)
This conditions on this $6k deduction sound confusing. It won't matter to me but it may help many. And off topic, but I'll post anyway. Why should taxes on Overtime Pay be ended? That seems to invite mischief at every organization. OTH accurately taxing Tips has always been difficult but the practice is established. Why change it?
3 people like this.

Reply 22 - Posted by: bighambone 7/4/2025 2:36:56 PM (No. 1972974)
Trump called for no taxes on social security, but Congress refused to do that as evidenced by what is in the final bill. That’s not Trump’s fault as he can only encourage Congress to do what he campaigned on, but if Congress refuses there is not much he can do about that. It’s just common sense that social security payments that come from the Federal Government should not be taxed by the Federal Government. The congressional Democrats really don’t care if social security is taxed as it’s a good bet that most Democrat constituents don’t pay Federal income taxes anyway.
9 people like this.

Reply 23 - Posted by: Sorosisbehindit 7/5/2025 8:55:48 AM (No. 1973168)
#18 I have not seen the detail, but my assumption is that if only one person is drawing SS, the benefit is 6000. If you are drawing SS early, but still under 65, who knows. A good question for your tax advisor.
1 person likes this.

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