👴👵 AARP Backs Bill to Reduce Tax Burden for Seniors (AARP Article)

[SpringIsHereVA]

FROM THE ARTICLE:

Legislation to Reduce Tax Burden on Older Americans.

Bill would boost deductions for those ages 65+, helping offset Social Security income taxes.

By Emily Paulin, AARP. Published May 05, 2025.

Americans age, they often find themselves living on fixed incomes while facing rising costs for housing, health care, food and utilities. For many, it’s a struggle to make ends meet.

That’s why AARP is endorsing new federal legislation that would provide financial relief to older Americans by increasing the additional standard deduction for taxpayers ages 65 and older. The increases would offset some — or even all — of the federal income tax charged on Social Security benefits.

USE LINK BELOW TO READ THE ARTICLE: https://www.aarp.org/politics-society/advocacy/info-2025/tax-burden-bill.html

[SpringIsHereVA]

So true AARP & thanks!!!  💛

FROM ARTICLE:

Americans age, they often find themselves living on fixed incomes while facing rising costs for housing, health care, food and utilities. For many, it’s a struggle to make ends meet.

Take care,

Nicole  👵

[Tonster521]

@SpringIsHereVA, Nicole, I understand that many folks consider SS Benefits as fixed income. However, the current SS program does provide for COLA which makes SS benefits variable income. I am providing a link that indicates the annual COLAs. https://www.ssa.gov/oact/cola/colaseries.html For illustration purposes, I used a $1,000 SS Benefits and increased that benefit by COLA for the period 2015 through 2024. The $1,000 SS Benefit is now a $1,318 SS Benefit. So, the SS program is not a fixed income benefit. It provides benefit increases from time to time. One of the issues is that many folks have no other source of retirement income. So, this proposed legislation appears to help the folks with greater income who pay federal income taxes. Although I do not have a current percentage of folks that pay FIT regarding their amount of SS Benefits, I have read that it hovers around 50%. This means that only the folks with higher incomes will receive a tax credit. The approximate 50% that do not pay FIT receive nothing (zero). I realize that some folks are in favor of avoiding FIT any way they can. However, it should be abundantly clear that providing tax credits to the higher incomes will require tax increases somewhere else.

[SpringIsHereVA]

Thanks for stopping by @Tonster521 !!!

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➡️[*** @Tonster521 wrote on Friday 5/9/25:

@SpringIsHereVA, Nicole, I understand that many folks consider SS Benefits as fixed income. However, the current SS program does provide for COLA which makes SS benefits variable income. I am providing a link that indicates the annual COLAs. https://www.ssa.gov/oact/cola/colaseries.html For illustration purposes, I used a $1,000 SS Benefits and increased that benefit by COLA for the period 2015 through 2024. The $1,000 SS Benefit is now a $1,318 SS Benefit. So, the SS program is not a fixed income benefit. It provides benefit increases from time to time. One of the issues is that many folks have no other source of retirement income. So, this proposed legislation appears to help the folks with greater income who pay federal income taxes. Although I do not have a current percentage of folks that pay FIT regarding their amount of SS Benefits, I have read that it hovers around 50%. This means that only the folks with higher incomes will receive a tax credit. The approximate 50% that do not pay FIT receive nothing (zero). I realize that some folks are in favor of avoiding FIT any way they can. However, it should be abundantly clear that providing tax credits to the higher incomes will require tax increases somewhere else. ***]

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[papawofboo]

You nailed that statement.

[SpringIsHereVA]

Thanks for stopping by Papaw @papawofboo !!!

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➡️[*** Papaw wrote on 5/5/25:

You nailed that statement. ***]

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