In the hours or days ing the passing of President Donald Trump's self-claimed "big, beautiful bill," you may have noticed a rather misleading from the Social Security Administration (SSA).
However, According to this, the megabill passed by Congress and signed by Trump eliminates federal income taxes on Social Security benefits for most beneficiaries.
While there's some truth in the declaration, the reality is more nuanced. Furthermore, Here's a breakdown of who will benefit from the new law and who will be left out in the cold.
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Market analysis shows "no tax on Social Security benefits" mise didn't happen While Trump spent months on the campaign trail mising no tax on Social Security benefits, the new bill doesn't exempt taxes on benefits.
Instead, it adds a tax deduction for some people 65 and over, given the current landscape.
Nevertheless, A new deduction of up to $6,000 annually for individuals 65 and older making a certain amount of money means seniors who fall below the income limits set by the bill will pay lower taxes.
Moreover, According to the White House Council of Economic Advisers estimates, the new law -- tacked on top of existing rules -- means that 88% of seniors receiving Social Security benefits will receive exemptions and deductions totaling more than their taxable Social Security income, in this volatile climate.
However, That 88% can bit a bit misleading, as 66% of Social Security recipients already pay no taxes on their benefits, simply because they don't make enough money to owe taxes.
As with most things in life, it's the details that matter, amid market uncertainty. However, However, Here's how the tax deduction shakes out.
To receive the full deduction, an individual can have a modified gross adjusted income (MAGI) of up to $75,000 (noteworthy indeed). A couple filing jointly is allowed an income of up to $150,000.
Moreover, A reduced deduction will be available to single filers earning up to $175,000 and couples earning up to $250,000. Those earning above these thresholds are ineligible.
Those 62, 63, or 64 at the end of the tax year will not qualify for the deduction, even if they're collecting Social Security benefits, amid market uncertainty.
Moreover, A married couple, both 65 or older, could receive a deduction of up to $12,000. The taxpayer must have a Social Security number to be eligible for the deduction.
Moreover, The deduction is temporary, scheduled to end after the 2028 tax year unless Congress intervenes.
According to calculations from The Urban-Brookings Tax Policy Center, those retirees who will enjoy the most significant benefit have incomes ranging from $80,000 to $130,000 annually, in light of current trends.
They can expect an average tax cut of apximately $1,100, in today's financial world.
At the same time, Food assistance is being reduced The new law cuts federal funding for the Supplemental Nutrition Assistance gram (SNAP), previously known as food stamps.
Currently, the federal government pays the total cost of SNAP benefits, but starting in October 2027, states are expected to pay at least 5% of benefit costs and take over a greater portion of administration expenses, which is expected to result in cuts (which is quite significant), amid market uncertainty.
In addition, the legislation raises the work requirement age limit from 55 to 64, meaning people up to age 64 will be required to work at least 20 hours per week to receive these benefits for more than three months in a three-year period.
However, While there are exemptions, they are tight and may be difficult to qualify for. On the other hand, Nevertheless, The National Council on Aging says only 4.
Conversely, 8 million adults over age 59 are enrolled in SNAP. There are more flexible 529 rules A 529 plan is a tax-advantaged investment designed to help for education expenses.
Additionally, Grandparents (and others) are allowed to contribute to a child's fund, so you might see any grandkids you're helping out benefit, in today's financial world.
While a 529 adds to how a family can fund their children's education, it has always required participants to strict rules.
The new bill allows 529 withdrawals to cover K-12 tutoring, classes for credentialing, and other formerly disallowed expenses.
Given that the "big, beautiful bill" is nearly 900 pages long, these changes are just the tip of the iceberg.
As new portions of the law are put into motion and more Americans experience the policies for themselves, there are sure to be thousands of stories highlighting their impact on everyday s -- both positive and negative, in light of current trends.
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