"Before the passage of the One Big Beautiful Bill Act, retirees started to get hit with tax on part of their Social Security benefits after their provisional income hit a specific threshold. That threshold is $25,000 for single tax filers and $32,000 for married joint tax filers. The income that's counted in provisional income for determining if you meet the threshold includes a limited amount of non-taxable income (like MUNI bond interest), all your taxable income, and half your Social Security."
""The rules on taxation of Social Security benefits were not changed. Do you hear me? No changes to Social Security," she said. Before the passage of the One Big Beautiful Bill Act, retirees started to get hit with tax on part of their Social Security benefits after their provisional income hit a specific threshold. That threshold is $25,000 for single tax filers and $32,000 for married joint tax filers."
The One Big Beautiful Bill Act did not change the taxation rules for Social Security benefits. Taxes on some Social Security benefits have applied since 1983, with modifications in 1993. Provisional income thresholds that trigger taxation remain $25,000 for single filers and $32,000 for married joint filers. Provisional income includes taxable income, half of Social Security benefits, and a limited amount of nontaxable income such as municipal bond interest. Those thresholds have not been adjusted for inflation for decades. A separate rule change will result in fewer retirees owing taxes on Social Security benefits.
Read at 24/7 Wall St.
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