Months after the One Big Beautiful Bill Act (OBBBA) was enacted, confusion remains about the taxation of Social Security benefits. Overall, nothing has changed. Taxation of these benefits depends on the recipient’s provisional income, which combines half of his or her Social Security benefits with adjusted gross income and tax-exempt interest income. The OBBBA did add a new, temporary deduction unrelated to Social Security for those age 65 and up. For 2025–2028, eligible taxpayers can each claim a $6,000 deduction, whether or not they itemize. But the deduction begins to phase out when modified adjusted gross income exceeds $75,000 ($150,000 for joint filers). Contact us with questions.
