Getty Images, Backyard Productions The important notice from SSA about taxes that all of America is already celebrating
The SSA has just issued a statement that has caused controversy among millions of American citizens
In recent days, the SSA (Social Security Administration) has sparked a major debate among citizens. This has happened after announcing that the new tax legislation would eliminate taxes on Social Security benefits.
However, the term SSA has been used imprecisely, which has led to confusion among beneficiaries. In this regard, this is not a permanent exemption, but rather a tax deduction that temporarily reduces the burden.
This has been the latest statement from the SSA
The SSA issued a statement announcing a new legislative package. This would reduce federal taxes on Social Security benefits for most retirees. In addition, an impressive figure was mentioned: 88% of beneficiaries would stop paying taxes.
However, this figure doesn't mean that taxes are completely eliminated. Rather, it is part of a communication campaign that several experts have considered misleading.
In reality, the law doesn't eliminate taxes on SSA benefits, but introduces a deduction for people over 65 years old. This deduction is $6,000 for individual taxpayers (income up to $75,000) and $12,000 for married couples (income up to $150,000).
How this SSA measure affects retirees
The new senior deduction is temporary and is only in effect from 2025 to 2028. After this period, previous limits will return, with no additional deduction. In addition, it is gradually reduced for incomes above the established thresholds and doesn't change the calculation of adjusted gross income (AGI), state taxes, or eligibility for other programs.
For retirees over 65 years old with moderate incomes, the tax burden will decrease, although it will not disappear completely. In addition, the SSA estimates that they could save up to approximately $670 per year, depending on their situation.
The legislative change announced by the SSA creates an opportunity for more beneficiaries to stop paying taxes on their benefits. However, this is not a permanent exemption, but a tax deduction that temporarily reduces the burden. It is essential to fully understand its scope, review your personal situation, and stay alert to confusing or potentially fraudulent messages.
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