SS tax

Turmp originally propose not taxing social security but that would help rich more than poor and take away from the social security fund. His new plan is to increase the standard deduction for seniors by $4000 and that is more help for low- and middle-income people. Here is an example John is over 65 and has a social security benefit of $24,000 and a $18,000 pension. His tax under current law is $550. With no tax on social security his tax would be $300 and the proposed new plan of increasing the std deduction by $4,000 his tax would be $150. According to Richard Johnson, a senior fellow at the Urban Institute, for the 2024 tax year, people with income between $11,601 and $47,150 would see their annual taxes reduced by approximately $480, assuming the proposed increase was in effect. For John his tax would be reduced by $400 ($550 - $150) In most state, including MN, when the federal tax is reduced it lowers the state tax due.