One of the biggest surprises that greet people signing up for Social Security benefits is the tax rule -- the rule is, most Social Security (SS) benefits are taxed.
And despite what you may have heard there is no new relief from paying SS taxes this tax year, but there is a new, temporary deduction if you're 65 or older against your overall adjusted income, according to one expert.
While it's true that you've paid into the SS system most of your adult life, many people believe that benefits after age 62 are not taxed, but they are.
And President Donald Trump's Big Beautiful Bill didn't eliminate SS taxes as was discussed by many in Congress last spring, but it did provide a $6,000 deduction for those 65 years old and up that's unrelated to SS.
It's that "unrelated to SS" that some people misunderstand, YouTube influencer and Certified Financial Planner Ryan Cravitz says.
Cuts in the SS tax remain just as last year, though the amount of SS benefits will go up with a Cost Of Living adjustment that in 2026 amounts to 2.8-percent, or just under 3-percent.
But the new $6,000 deduction for people 65 and older "applies to all income, so it applies to all SS benefits that are subject to tax," Mr. Cravitz says.
The $6,000 overall deduction that starts this year is only temporary, and will be discontinued in 2027 unless Congress renews it.
"And it does phase our once your income reaches certain limits...beginning with modified adjusted gross incomes at $75,000 for individuals and $150,000 for married couples filing jointly."
It's also important to keep in mind that the new deduction phases out completely and does not apply to modified adjusted gross incomes above $175,000 for individuals and at $250,000 a year for married couples.
