General Discussion

was complicated.

The way taxation on it has always worked is that after a pretty low threshold, I think about $32,000, a portion of your SS is taxed maxing at 85 percent. That calculation stays exactly as it was.

However after the AGI is computed, seniors with up to $150,000 joint income, get an additional deduction of $6000. For people below that income level, this will lower their taxes. The amount lowered will depend on the top marginal rate they pay.

Obviously, if you are getting say $35,000 in social security and through RMD withdrawals, pensions etc are paying taxes on 85 percent of that, you will still pay taxes on more than half of your SS even if you qualified for the full deduction

Also, if your SS plus other income is too low to pay income taxes, you are unaffected. It would be helpful to people earning enough to pay taxes on some of their SS and who will owe nothing after that deduction. For others, it will lower the amount.