When it comes to retirement, it is important to identify as many tax deductions as you can. After all, you are on a limited income. Learning about a new senior tax deduction could make all the difference in the world. Many headlines have suggested that this deduction would “eliminate” all Social Security taxes, but that’s not entirely true. What you can count on is that it will offset much of the taxable portion of your income as a retiree. Around 88% of seniors will not have to pay federal taxes on their benefits, but it’s not a repeal of Social Security taxation altogether. However, this deduction is temporary (set to expire after 2028).
So, how does this senior tax deduction work, and who qualifies? Here’s everything you need to know.
