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Social Security/New tax bill

How does the new tax bill affect the income tax on Social Security benefits? Has the formula changed or is it the same?  Have not seen anything addressing this, a subject that will affect millions of senior citizens.

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@lorrainel802492  How would this affect the COLA. As long as the increase stays at 2% that means I should see around a $30.00 increase to my Social Security. I already know that my Medicare Advantage insurance plan has gone down by $2.00 a month for next year. I also have a set percentage for being withheld for taxes this may increase a small amount but I should still come away with a little more money in my SS Check.

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Honored Social Butterfly

@cat0w

 

I don't believe that you are counting an increase in your Part B premiums for 2018 if they are now less than $134 per month.

 

They have not officially announced the premiums for Part B for 2018 but the Trustees and various media outlets are prophecizing that the rates for most everybody will rise to that level because that is what newly enrollees are paying in 2017 and with that 2% COLA scheduled for next year, it will remove many beneficiaries from the "hold-harmless" Social Security provision.

 

So that 2018 increase may dwindle down to cover an increase in Part B premiums.

 

Regardless of how the COLA is figured, if each COLA is eaten up by higher Part B premium hikes cause the increases would still consider the Social Security hold harmless clause.

It's Always Something . . . . Roseanna Roseannadanna
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The guessing is over, I will get $7.20 more in my next SS check for Jan. 2018.

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If mine turnout the same as yours, I am going to set aside the windfall from 2000 checks and by a used car.
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My taxes would go up $219.26 because of the loss of the $4,050 personal exemption.  Also, with my medical/LTC/charitable/Real Estate Tax deductions, I am already close to $11,000 itemized deductions.  The new tax plan is worse for me.

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For me, I think it is a wait and see as to what gets passed and signed into law. What tax bracket will I fall under, will the deduction for being born before January 2, 1952 still be there, increasing the standard deduction? For now this is an unknown.

 

Looking at my taxes from last year, if, the standard deduction is doubled and that's all I have to use then my taxes would stay probable the same unless the tax bracket I end up in helps lower it.

 

Nov.4,   I will add this link, Tax Plan Changes , that I found by doing a Google search. It explains more and shows the percentage of the new tax brackets and the amount of income covered under each.

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