Episode 67: In this episode, Timalyn continues the discussion begun in Episode 64 about the One Big Beautiful Bill Act. Timalyn opens up the episode with a reminder of what the One Big Beautiful Bill Act is.
There is a video version of this episode! You can watch it here : Senior Deduction Video
Today, she's explaining the enhanced senior deduction for taxpayers who are 65 and older. This deduction will be available for tax years 2025 - 2028. If there is any part of this new tax law that you'd like to hear her cover, please let us know.
What is the standard deduction for 2025?
The standard deduction is an amount that the IRS allows taxpayers to deduct from their taxable income. For 2025 the standard deductions are:
$15,750 for taxpayers filing as single or married filing separately
$31,500 for married filing jointly taxpayers
$23,625 for those taxpayers filing as head of household
It is an additional $6,000 deduction for each qualifying taxpayer. So if a couple married filing jointly is in their 70s, they are eligible to deduct an additional $12,000 from their taxes if they meet other criteria.
Seniors already get to deduct an additional $1,600 for those Married filing separately and jointly, and $2,000 for those filing as Single or Head of Household. The $6,000 is in addition to this. The senior deduction is also available whether the taxpayers itemize or use the standard deduction.
If the taxpayer is not married filing jointly, the deduction begins phasing out when their modified adjusted gross income reaches $75,000. This doubles to $300,000 for taxpayers who are married filing jointly. The IRS has yet to give more guidance on this.
To stay up to date with these changes, Timalyn lets listeners know that Tax Tips with Timalyn will be coming back. There will be different paid versions to subscribe to relevant information for individual taxpayers and business taxpayers.
No Tax on Social Security Benefits
A proposal was made during President Trump's last campaign that there be no tax on Social Security benefits. Social security benefits are still taxable income, but it is based on your provisional income, whether or not you actually pay taxes on the income. Timalyn goes into more detail about this in another episode of the podcast and a video. Both are linked down below for your convenience, as well as a playlist with other relevant information for retired taxpayers.
Need Tax Help Now?
If you need answers to your tax debt questions, book a consultation with Timalyn via her Bowens Tax Solutions website. Click this link to book a call.
Please consider sharing this episode with your friends and family. There are many people dealing with tax issues, and you may not know about it. This information might be helpful to someone who really needs it. After all, back taxes shouldn't ruin their life either.
As we conclude Episode 67, we encourage you to connect with Timalyn on social media. You'll be able to subscribe to this podcast on Spotify, Apple Podcasts, YouTube, and many other podcast platforms.
Remember, Timalyn Bowens is America's Favorite EA, and she's here to fill the tax literacy gap, one taxpayer at a time. Thanks for listening to today's episode.
For more information about tax relief options or filing your taxes, visit https://www.Bowenstaxsolutions.com/ .
If you have any feedback or suggestions for an upcoming episode topic, please submit them here: https://www.americasfavoriteea.com/contact.
Disclaimer: This podcast is for informational and educational purposes only. It provides a framework and possible solutions for solving your tax problems, but it is not legally binding. Please consult your tax professional regarding your specific tax situation.
