[Romad]

Originally Posted by ton80

SS Income is NOT Tax Free. There is only a temporary tax deduction of 12 K$ for couples. The deduction expires in 2028. That is where you messed up. The criteria of AGI less than 150k is for the deduction only.

The reason the deduction is temporary is because of Congressional Budget Office scoring. It will be made permanent before they expire.

The deduction is based on Modified Adjusted Gross Income (MAGI), not Adjusted Gross Income. The phaseout for a married couple begins at $150,000 and is fully phased out at $250,000. The phase out is not adjusted for inflation.

[CoachKandSportsguy]

Originally Posted by Romad

The reason the deduction is temporary is because of Congressional Budget Office scoring. It will be made permanent before they expire.

The deduction is based on Modified Adjusted Gross Income (MAGI), not Adjusted Gross Income. The phaseout for a married couple begins at $150,000 and is fully phased out at $250,000. The phase out is not adjusted for inflation.

so its tax free until it isn't,
both in time and income level

where have i read that before?

[Pat2015]

Originally Posted by ton80

I am not sure what you are referring to.

The current law ( BBB Tax Law) now is: The maximum tax relief is the extra 12K deduction if the couple's AGI is less than 150K.

The rest, 48K in the OP's example, is part of his AGI and will be taxed. There is no change required in 2028.

The current bill expires in 2028, just like the tax cuts from 2017 were going to expire unless it was made into law. If there’s a change where you lose the $6000 break for taxes on your SS, Seniors will be furious.