Maximum euphoria in the United States after SSA confirms this news: up to $12,000

Americans aged 65 or older are filled with joy after the announcement from the Social Security Administration (SSA) and the U.S. government about a highly desired tax deduction. This is a standard deduction for certain citizens.

The SSA stated that, thanks to the benefit included in the "One Big Beautiful Bill" law, 90% of beneficiaries will no longer pay federal taxes on their benefits. This statement has sparked great excitement among seniors, although some experts warn that it doesn't directly eliminate taxes, but rather reduces taxable income through an additional tax deduction.

The tax deduction that brings joy to millions of Americans: SSA confirms it

The new law offers an additional $6,000 tax deduction for each person aged 65 or older. If a married couple both meet this tax requirement, they can deduct up to $12,000 together. This deduction is temporary, as it will only be in effect from 2025 to 2028.

Additionally, this deduction is valid whether the standard deduction is used or itemized. This makes it more flexible than previous aid programs aimed at seniors.

Who can apply for it and how does it work?

To access this deduction, the person must be 65 or older as of December 31 of the tax year, and the income to consider is the MAGI. If a single person earns up to $75,000, and a married couple up to $150,000, they receive the full deduction.

If their income exceeds these limits, the deduction is reduced by 6% for every dollar above the threshold, disappearing once it reaches $175,000 for singles or $250,000 for couples. Beneficiaries must include it when preparing their tax return, whether using the standard or itemized form, and declare the additional deduction for seniors.

They must have their Social Security number and accurately fill out the MAGI. The IRS plans to offer specific guides for 2025 and properly filter this deduction in the 2025 tax return (to be filed in 2026).

This is how the government and SSA justify this measure

The federal government, upon passing the law, describes it as a historic step to ease the tax burden on older Americans, especially for those who largely depend on Social Security. SSA celebrates that this measure will allow a high percentage of seniors to pay less or no taxes on their income, since the deduction reduces the income subject to SSA taxation.

However, some analysts, such as the Tax Policy Center, warn that this interpretation is incorrect or, at least, partial. The deduction doesn't eliminate the tax on Social Security benefits, but rather reduces the total taxable income, which can indirectly prevent the tax for many.