{"id":567582,"date":"2026-03-29T00:24:24","date_gmt":"2026-03-29T00:24:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/567582\/"},"modified":"2026-03-29T00:24:24","modified_gmt":"2026-03-29T00:24:24","slug":"heres-exactly-what-social-security-retirees-need-to-do-to-qualify-for-the-new-tax-deduction","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/567582\/","title":{"rendered":"Here\u2019s exactly what Social security retirees need to do to qualify for the new tax deduction"},"content":{"rendered":"

\t\"Here\u2019s\t<\/p>\n

\u00a9 Rix Pix Photography \/ Shutterstock.com<\/p>\n

The One Big Beautiful Bill Act introduced a new tax deduction that many retirees can take advantage of. While the deduction does not directly eliminate tax on Social Security benefits, it has the effect of reducing taxable income for many, which means that it makes it less likely that Social Security benefits will be taxed.\u00a0<\/p>\n

<\/p>\n

You need to understand who can claim the new senior tax deduction, though, and how the claiming process works. Here\u2019s what you need to know.<\/p>\n


\nWho can claim the new retiree tax deduction? <\/p>\n

The new tax deduction is available through 2028, and all eligible seniors can claim it. You do not need to be actively collecting Social Security to be eligible. What you do need to do is:<\/p>\n


\n
\nBe age 65 or over by the end of the tax year.\u00a0
\nHave a modified adjusted gross income below the threshold. The benefits begin to phase out at a $75,000 modified adjusted gross income for single tax filers and phase out entirely at $175,000. For married joint filers, the deduction begins to phase out at $150,000 in income, and eligibility disappears entirely at $250,000.\u00a0
\nHave a U.S. Social Security number and file a tax return.
\n <\/p>\n

You do not need to claim the standard deduction to be eligible for the new deduction. You can claim it even if you itemize on your tax return. It\u2019s your choice if you claim the standard deduction or itemize, and it doesn\u2019t affect your eligibility for the new deduction in any way.\u00a0<\/p>\n


\nHow does the new tax deduction work for retirees?
\n\"\"lucky336 \/ Getty Images <\/p>\n

The new tax break created by the One Big Beautiful Bill Act allows seniors to claim a $6,000 deduction.<\/a> This is per person over 65, so married couples can claim a total of a $12,000 deduction if both spouses are 65 or older.\u00a0\u00a0<\/p>\n

<\/p>\n

The deduction can be claimed on top of the regular standard deduction (or on top of your itemized deduction) and on top of the additional standard deduction already available to seniors.\u00a0<\/p>\n

<\/p>\n

Deductions reduce your taxable income. They don\u2019t work like credits, which reduce your tax bill on a dollar-for-dollar basis. A $6,000 credit, for example, would take a $10,000 annual tax bill down to a $4,000 annual tax bill. Deductions don\u2019t do that. Instead, a deduction reduces taxable income, so you pay tax on less of what you bring in. If you would have been taxed on $50,000 in income and you saved $6,000 because of the new deduction, you are only taxed on $44,000 in income.\u00a0 Your savings come from the fact that you didn\u2019t pay tax on $6,000 of what you earned.\u00a0<\/p>\n

<\/p>\n

If this new deduction brings your MAGI down low enough, you will avoid taxes on Social Security benefits because you will not hit the threshold at which the retirement benefits become taxable. That happens when provisional income (half of Social Security checks plus all taxable and some non-taxable income) exceeds $25,000 for single tax filers or $32,000 for married joint filers. Getting an extra $6,000 or $12,000 knocked off your taxable income with the new deduction significantly reduces the chances you\u2019ll hit those thresholds and end up owing.\u00a0<\/p>\n

<\/p>\n

You should make sure to claim this deduction when you file your tax returns if you\u2019re eligible, and if you\u2019re not sure if you can qualify for this tax savings, working with a professional accountant could be a smart choice.<\/p>\n

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