How The Reconcilliation (Obbba) Bill Will Affect Our Taxes

Muskrat said:
Thank you for that Diva…
Click to expand...
You're welcome, of course Muskrat and @GoodEnuff
Tom52 said:
Looks to be a good deal for seniors. I will be paying less taxes for at least the next 4 years. Who knows what will happen after 2028.
Click to expand...
Over the last several years, the State of N.J. kept lowering the amount of taxes they took out of my pension payments for some unknown reason. That caused me to have to pay a bit more at tax time. I'll be happy if I don't have to pay an additional tax when I file, or at least see the amount lowered.
 
Tom52 said:
Looks to be a good deal for seniors. I will be paying less taxes for at least the next 4 years. Who knows what will happen after 2028.
Click to expand...
Tom, for the last several years, my tax balance when filing was around $275. This year I got back $430, a very pleasant surprise. Regarding what may happen in 2028, like the saying goes 'We'll cross that bridge when we get to it".
 
Well, don't get me wrong, I do appreciate the extra $6,000 exemption above prior years, I still wished they would have skipped the bonus deduction for seniors and instead decided to stop taxing our social security at all. Here's why:

If you make $30,000 in soc sec and $20,000 in investment income, and file single, and take the standard deduction, and are over 65, then you end up paying $2,378 because 85% of your SS is considered taxable.

On the other hand, if SS was not taxed, then using the same income figures (Without the $6,000 bonus), your end of year tax is only $225. That's a difference of over $2,000 in your favor.

The "You Earned It, You Keep It Act" to end the taxation of SS has been introduced in both the House and Senate, but has never become law. I think it would have been the right thing to do, but as Joey would say: "It's a moo point" (It's a cow's opinion .... it doesn't matter).
 
Last edited:
OneEyedDiva said:
Tom, for the last several years, my tax balance when filing was around $275. This year I got back $430, a very pleasant surprise. Regarding what may happen in 2028, like the saying goes 'We'll cross that bridge when we get to it".
Click to expand...
Once the government gives us a tax break it is difficult for them to take it away. Sort of a political suicide for reelection. I am fairly confident it will extend beyond 2028.

I would have much preferred no tax on SS but that is probably a bridge to far. Many on SS already pay no federal tax.
 
bobcat said:
Well, don't get me wrong, I do appreciate the extra $6,000 exemption above prior years, I still wished they would have skipped the bonus deduction for seniors and instead decided to stop taxing our social security at all. Here's why:

If you make $30,000 in soc sec and $20,000 in investment income, and file single, and take the standard deduction, and are over 65, then you end up paying $2,378 because 85% of your SS is considered taxable.

On the other hand, if SS was not taxed, then using the same income figures (Without the $6,000 bonus), your end of year tax is only $225. That's a difference of over $2,000 in your favor.

The "You Earned It, You Keep It Act" to end the taxation of SS has been introduced in both the House and Senate, but has never become law. I think it would have been the right thing to do, but as Joey would say: "It's a moo point" (It's a cow's opinion .... it doesn't matter).
Click to expand...
I get a lot less in SS and not nearly that much of investment income is taxed because most of my investments are in a Roth. Therefore those calculations don't work for me and perhaps many others. For 2024, 25% of my SS was taxed. For 2025, only 22.5% of my SS was taxed, even though obviously, I was getting more.
 
You must log in or register to reply here.
Back
Top