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If your client qualifies to amend 2021, then the 2021 Recovery Rebate for his son may also be in play.

The Committee For a Responsible Federal Budget and a number of other analyses that I have read say otherwise. https://www.crfb.org/blogs/obbba-would-accelerate-social-security-medicare-insolvency "However, OBBBA would impact Social Security and Medicare indirectly, mainly by reducing the revenue collected from the income taxation of Social Security benefits, which is deposited into the Social Security and Medicare trust funds.1"

I don't think it will. If that were true they would have needed to change the code section that authorizes payment from general fund to trust fund and the formula used.

Wow, I had totally forgotten about those

Twitter was abuzz about that yesterday. Some guy was going on why if he won 400K but lost 500K why he now has to pay tax on the 40K. He didn't like my answer that it's a stupidity tax on people that throw away money gambling.

I see what you are saying but I disagree because this deduction will reduce the taxes paid on social security benefits which are dedicated to the Social Security Trust Fund.

Seriously wish people would stop equating the 6K deduction to taxes on SS benefits. 1. People who are age 65 but not drawing benefits get the deduction. 2. People under 65 with benefits will see no change. 3. Taxable income is taxable income. You could just as easy say they are receiving 6K of interest tax free. Or, 6K of wages. Or any other line item that makes up taxable income. 4. If it is reducing SS taxation, then it would have needed to be set up the the only way a person receives it is if there is taxable SS benefits and age would not matter.

I still have, in deep files under lock & key, a set of tax forms sent to me in the mail - with the little sticker with my name, address, and ssn on it. Remember those? (That year I had moved so I did not use the sticker.)

Garnishment is for those who have been overpaid - and there are several ways to get it waived or the payback rate lowered. https://www.fool.com/retirement/2025/07/04/social-security-garnishment-begin-july-24-avoid-it/ As for those who are delinquent on student loans, either cancel them all, or everyone has to pay them back. Picking & choosing winners & losers (who skates & who pays) sets up anger on all sides at all sides.

Under the OBBB, only 90% of gambling losses will be deductible. I'm sure there are other tax tidbits that will pop up.

Different analyses that I have read say that it reduces the percentage of seniors who will pay taxes on their social security benefits from about 40 % down to about 12 %. The same analyses say that the social security trust surplus will be gone in 7 years (2032) since taxes on social security benefits are dedicated to the trust fund

Some people are going to be in for a world of hurt.

It doesn't change the standard deduction, as it's a separate line item. Also available to those that itemize.

“(C) DEDUCTION FOR SENIORS.— “(i) IN GENERAL.—In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual with respect to the taxpayer. “(ii) QUALIFIED INDIVIDUAL.—For purposes of clause (i), the term ‘qualified individual’ means— “(I) the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and “(II) in the case of a joint return, the taxpayer's spouse, if such spouse has attained age 65 before the close of the taxable year. “(iii) LIMITATION BASED ON MODIFIED ADJUSTED GROSS INCOME.— “(I) IN GENERAL.—In the case of any taxpayer for any taxable year, the $6,000 amount in clause (i) shall be reduced (but not below zero) by 6 percent of so much of the taxpayer's modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). “(II) MODIFIED ADJUSTED GROSS INCOME.—For purposes of this clause, the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.

I am a little confused about what I am reading. I think what it says is if you are: 1. Over 65 2. Income below 75K S / 150K MFJ You get an additional 6K standard deduction. My Questions: 1. Do both spouses have to be over 65? 2. Do both spouses get 6K? 3. Does this affect the additional over 65 Std Deduction? 4. How does the phaseout work? Is it a cliff? What is the basis for phaseout income? MAGI? I am sure I will get all my answers when I do my CPE in Nov. Tom Longview, TX

Garnishment for up to 50 % of their benefits will begin on July 24th for more than One Million Social Security recipients.

If son qualifies as dependent, client may also qualify for HOH. No problem to amend back three years, just make sure you have done your due diligence for qualification.

A client has a 59 year old son who has no income and who he supports. His son has lived with him for over five years and the client never mentioned this to his former tax preparer. I added the son as a dependent for 2024. Can i amend his 2021, 2022, and 2023 returns to reflect this change. Never carried one back this far and for this reason so I need to make sure it's legal.

Phaseout of the add'l 6K starts at 75K for S and HOH and 150K for MFJ. I have several clients that I give an amount to each year how much they can convert from Trad to Roth free of tax. I'm going to need to recalculate and contact those clients so they don't think they can just add the 6K amount and still pay zero FIT.

Includes: "The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned." Bad enough that we need to dispel the "somebody said" and FB garbage, now it's coming direct from federal agency. Shameful.

And just think of how many of us have clients whose tax returns from prior to 2000 are lying around with our social security numbers on them. (or tossed in the garbage when they did house cleaning or by their heirs)

Perhaps. The IRS did ask us to check our PTIN accounts to see if the number of returns filed uner our PTIN seemed reasonable. But they're probably stealing our PTINs from copies of returns we've prepared. That's why our PTINs are masked on the client copy now. For years, they were not masked.

We can think about it; that's 90% of the joy and 0% of the repercussions!