Social Security: The $6,000 Tax Break Debate

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President Trump's promise of "no tax on Social Security" is taking center stage as Congress debates a new tax-and-spending bill.  #SocialSecurityTax #SeniorTaxBreak #TrumpTaxPlan

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00:00President Trump's promise of no tax on Social Security is taking center stage as Congress

00:05debates a new tax and spending bill. While a complete elimination of Social Security taxes

00:10isn't on the table, the Senate's latest proposal includes a temporary bonus senior tax deduction

00:15of $6,000 per person for tax years 2025 through 2028, aligning with Trump's second term.

00:22This deduction would be available to single filers with incomes up to $75,000 and joint

00:27filers up to $150,000, phasing out at higher incomes. It's designed to primarily benefit

00:34seniors with modest incomes, though the lowest earners, who already pay no federal income taxes,

00:40won't see a benefit, nor will the highest earners or those under 65 receiving benefits.

00:45Currently, 64% of people 65 and over don't pay income taxes on Social Security, and the White

00:51House estimates this bill would raise that to 88%. This bonus deduction would be on top of existing

00:57senior standard deductions and the base standard deduction, meaning a married senior couple could

01:02see total deductions of $46,700 under the Senate plan. For a married couple with average Social

01:09Security and pension income, this could translate to a tax savings of about $1,620 annually.

01:17While some voters are disappointed it's not a full elimination of Social Security taxes,

01:21many seniors are welcoming the proposed relief amidst concerns over rising costs.

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