No, Social Security Isn’t Suddenly Tax-Free – Here’s What Really Changed

If you saw headlines or emails claiming “no more tax on Social Security”, you are not alone.

Here is what actually changed.

Starting in 2025, taxpayers age 65 or older can claim a brand‑new Senior Deduction— $6,000 per person, or $12,000 for a married couple if both qualify.

This deduction is on top of both the standard deduction and the current additional standard deduction for seniors, making it additionally beneficial for seniors.

Key Points:

• Stacks with the existing standard deduction to reduce taxable income.

• Not directly tied to your Social Security, but other eligibility requirements.

• Available for 2025 through 2028 under current law.

If both spouses are 65 or older, this new deduction could lower your taxable income by up to $12,000.

This is a fantastic new tax law for seniors, providing an additional deduction to help lower federal income tax.

If you will be 65 or older in 2025, this is a valuable new deduction to plan for the upcoming tax season.

Each week, I share a clear, bite-sized tax insight straight from my continuing education so you can stay informed without sifting through tax changes.

Next week we further discuss who qualifies for the senior deduction.

Thanks for reading,

Brandy Sparkman, EA

I’ll keep learning so you can stay focused on what you do best.

See you next week for another Tax Minute.