What Trump’s Tax Bill means for Seniors on Social Security

Hi friends,

If you live in Santa Rosa, Sebastopol, or Sonoma County, here’s what Trump’s Tax Bill changes for seniors on Social Security, and what stays the same.

What the law says

Trump’s Tax Bill enacted a temporary federal income tax deduction for seniors age 65 and older:

• Up to $6,000 for individuals.

• Up to $12,000 for married couples when both spouses are 65+.

• Phase-outs start above $75,000 MAGI for single filers and $150,000 for joint filers.

• Applies to tax years 2025 through 2028.IRS filing instructions and examples are forthcoming.

Sebastopol Landscape

We await IRS reporting guidance on forms and worksheets for 2025 returns.

It’s not a full tax break

This deduction does not repeal the existing rules that can make up to 85% of Social Security benefits taxable. Your outcome still depends on your total income mix and filing status. See IRS Publication 915 for today’s framework and examples, and the SSA FAQ on taxing Social Security for a quick overview.

Who may benefit

This may help:

• Lower to moderate income seniors near current taxability thresholds.

• Retirees who already pay some tax on benefits and meet the age and income limits.

It likely won’t help:

• Seniors who already pay no federal tax on benefits.

• Higher-income seniors above the phase-out ranges.

Senior doing taxes

What to do now

Do not change withholdings or estimated payments based on headlines. If you want a projection, book tax preparation or a tax consulting & optimization session and we’ll run the numbers for your situation. If you have questions, contact us and we’ll walk through it together.

FAQs

• Is my Social Security now tax-free? No. The deduction reduces taxable income for some seniors. It does not eliminate federal taxation of benefits under existing rules. See IRS Publication 915.

• Who qualifies for the deduction? Seniors age 65+ under the income limits above. The full mechanics will be in IRS filing guidance for 2025 returns.

• Should I change my estimates now? No. Keep your current settings until the IRS releases filing instructions. We can model scenarios if you want a preview.

• How do states treat Social Security? Rules vary by state. If you split time between states or recently moved, book a tax consulting & optimization session to review your specifics.

Key takeaways

• Enacted deduction for seniors: $6,000 single, $12,000 married if both are 65+, 2025–2028.

• Phase-outs begin at $75k single and $150k joint MAGI.

• This does not repeal existing Social Security tax rules.

• Wait for IRS filing guidance before changing withholdings.

Warmly,

Melissa Ochoa

Enrolled Agent & Owner, Apple Blossom Tax Service

Serving Sebastopol and Sonoma County