AARP Hearing Center
Did you forget to take the extra $6000 in senior deductions to save yourself some Social Security taxes on benefits?
I find the question insulting!
An additional $6000 deduction for us old people does little to mitigate the cost imposed by Ronald Reagan increasing our taxes by eliminating the exemptions from Social Security and unemployment insurance income.
IconClast, it appears you do not understand the value of the Enhanced Deduction for Seniors which is $6,000/$12,000 Single/Married Filing Jointly. It is estimated that approximately 80% or more folks age 65 and older will not pay any federal income tax on their SS Benefits. The deduction is available for folks with Adjustable Gross Income below $75,000/$150,000 Single/Married Filing Jointly. If above this threshold, the deduction is reduced and is phased out at $175,000/$250,000 Single/Married Filing Jointly.
FYI, if Single, qualifying for the $6,000 enhanced deduction is equivalent to a $50,000 deduction of taxable income if one is in the 12% tax bracket ($50,000 X .12 = $6,000). There are not many Single folks with SS Benefits that exceed $50,000. Double the math for Married Filing Jointly.
@Tonster521mused that it might appear I “do not understand the value of the Enhanced Deduction for Seniors” (my understanding is irrelevant) that's “… for folks with Adjustable Gross Income below $75,000/$150,000”.
I said nothing about amounts of income, deduction(s), or taxes. I mentioned the RATE of taxation without regard to any other thing. It matters little whether my gross or adjusted income was $100 or $100,000 from my union pension or Social Security or financial/trading income/losses or income from other sources such as rents, dividends, or interest.
@Tonster521asked “Has your taxable income increased?”
Of course the amount of tax paid on my taxable income that increased by 35% should be greater, even more than the billionaire president's $750. The RATE of taxation INcreasing by 0.618% is not a cut•←[that's an emphatic period.]
So my subject question stands: What “middle class tax cut”?