Social Security and the One Big Beautiful Bill Act (OBBBA)

The One Big Beautiful Bill Act was signed into law on July 4th. 

Due to Congressional rules, the “no tax on Social Security” provision could not be in the OBBBA. 

To help make up for this, Congress created a bonus tax deduction of $6,000 for individuals and $12,000 for couples 65+. 

Unfortunately, it is available only for tax years 2025-2028. 

The deduction phases out for higher income earners starting at $75,000 of adjusted gross income (AGI) for singles and $150,000 for couples. 

It completely phases out at $150,000 AGI for singles and $250,000 for couples.  

If you have been thinking about doing a Roth conversion or are already doing them, 2025-2028 will allow to convert a larger amount if you are 65+.