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"Big Beautiful Bill" and "No Tax on SSA Benefits"
Posted: Thu May 22, 2025 11:11 am
by dusty
Is this too good to be true. The House has voted and we now wait for the Senate. Could it be?
Re: "Big Beautiful Bill" and "No Tax on SSA Benefits"
Posted: Thu May 22, 2025 1:02 pm
by DLB
dusty wrote: ↑Thu May 22, 2025 11:11 am
Is this too good to be true. The House has voted and we now wait for the Senate. Could it be?
IIUC the answer is yes, that is too good to be true. Tax fairness on SSA benefits is not part of the "BBB" just passed by the House. (It is still alive and part of something else.) No tax on tip income and overtime income are still in the bill. And they have added some kind of increased deduction (up to $4K) for those over 65. The operative phrase being "up to" I imagine. I found this:
"The bill provides a “historic tax break” to seniors receiving Social Security, “fulfilling President Trump’s campaign promise to deliver much-needed tax relief to our seniors,” White House assistant press secretary Elizabeth Huston said via email."
Political spin, for sure. I am unfulfilled. And I am thankful that I don't live at the income level where a $4K deduction equates to no taxation on SSA income.
- David
Re: "Big Beautiful Bill" and "No Tax on SSA Benefits"
Posted: Thu May 22, 2025 4:02 pm
by dusty
DLB wrote: ↑Thu May 22, 2025 1:02 pm
dusty wrote: ↑Thu May 22, 2025 11:11 am
Is this too good to be true. The House has voted and we now wait for the Senate. Could it be?
IIUC the answer is yes, that is too good to be true. Tax fairness on SSA benefits is not part of the "BBB" just passed by the House. (It is still alive and part of something else.) No tax on tip income and overtime income are still in the bill. And they have added some kind of increased deduction (up to $4K) for those over 65. The operative phrase being "up to" I imagine. I found this:
"The bill provides a “historic tax break” to seniors receiving Social Security, “fulfilling President Trump’s campaign promise to deliver much-needed tax relief to our seniors,” White House assistant press secretary Elizabeth Huston said via email."
Political spin, for sure. I am unfulfilled. And I am thankful that I don't live at the income level where a $4K deduction equates to no taxation on SSA income.
- David
The Fairness Act is a bill independent of federal income tax. The Big Beautiful Bill was advertised to include "no tax an SSA" no I don't see that being touted now.