How Taxes Change for Social Security Retirees in 2025
Those aged 65 and older can now claim an additional standard deduction of up to $6,000 for singles or $12,000 for married couples (both spouses 65+), on top of existing deductions. This extra deduction begins phasing out at $75,000 for single filers and $150,000 for joint filers, disappearing entirely above $175,000 and $250,000, respectively.
Combined with other provisions—like a temporary boost to the SALT deduction cap (from $10,000 to $40,000 through 2029) and a deduction of up to $10,000 for auto loan interest on U.S.-assembled vehicles purchased between 2025 and 2028—many retirees could see their taxable income fall to zero, with the White House estimating that 88% of seniors on Social Security will owe no federal tax on their benefits.
However, these tax breaks sunset after a few years, and the bill includes cuts to safety-net programs that could negatively impact older adults. Funding for SNAP (food stamps) shifts to the states, with expanded work requirements now affecting some people aged 55–64, parents of older children, and certain veterans—changes that may reduce eligibility for food aid.
Medicaid may also see new work rules in some states, raising concerns for millions of older adults, though Medicare remains untouched. In short, while retirees can benefit from larger deductions and reduced tax bills under the law, they should also be aware of the potential loss of other benefits.
Read the full article here.
Stout Bowman regularly posts important and interesting information on our blog. Current topics include credit/debit/loans, estate planning, insurance, investing, Medicare, retirement, Social Security and taxes, as well as general information that we think you might find of interest. 
We have been publishing an email newsletter for our clients and friends since 2016. Links to all of the newsletters can be found on our newsletter page, with the most recent listed first. We try to keep our emails short, so there are typically only three articles in each one, most of which link to other articles in the financial and mainstream press. 
We also have a page on our site for the latest news about our company, notice of any upcoming events, and a market commentary to discuss what our advisors and other financial industry experts conclude about the previous investment performance and what we might expect the markets and the economy will do in the coming months. 
Many news organizations offer what is called a Rich Site Summary (RSS) feed, a listing of the latest changes to their site's content. We have subscribed to several of these news feeds and present a list of their latest ten articles on a page on this website to save our clients the hassle of going to multiple websites just to see what is available. Currently, we subscribe to 
At Stout Bowman every investment client is first a financial planning client; it's important to go through that process before we make any professional investment recommendations. Therefore, we strive to make financial planning understandable and comfortable every step of the way. One way to do that is to provide our clients access to financial education resources. To that end, we have subscribed to educational websites to receive their news feeds and present a list of their latest ten articles on a page on this website. Currently, we offer