No Tax on Social Security? Here's What Retirees Actually Got

From Fireproof Your Money · 15:43

Show by Wayne Firebaugh

No more tax on Social Security? It isn't true. What the 2025 tax law gave people 65 and older is a new $6,000 senior deduction, and it comes with four traps.FREE one-pagers: a companion checklist for both parts of this episode and a key number sheet with every dollar threshold and its official source. No credit card, no phone number: https://www.dropbox.com/scl/fo/qztbrrcmf0mv5fo4j07o8/AB0fIEHbloDvnLnHHSewrIw?rlkey=o5rhqb8k2l7s4gqewyhey093a&st=k9u2jaxe&dl=0Did the One Big Beautiful Bill Act end taxes on Social Security? CPA and fee-only fiduciary Wayne Firebaugh explains what really changed for retirees: the new senior deduction (up to $6,000 per person 65 or older, $12,000 for a married couple, 2025 through 2028), who qualifies even if still working or delaying Social Security, the income phase-out ($75,000 single, $150,000 married), Schedule 1-A, why married filing separately gets zero, the new charitable deduction for people who don't itemize ($1,000 single, $2,000 married, from 2026), the 0.5% floor for itemizers, the SALT deduction cap rising from $10,000 to $40,000, and which tax breaks expire. Built for retirees and anyone turning 65, especially married couples.CHAPTERS0:00 Preview: the headline that isn't true0:55 No tax on Social Security? Why it isn't true1:24 What the One Big Beautiful Bill Act changed for retirees1:59 This 2-part episode, and the ground rule2:55 Trap 1: Leaving the $6,000 senior deduction on the table3:17 Who gets it: 65 or older, up to $6,000 ($12,000 a couple)3:35 What $6,000 is really worth: about $720 or $1,3004:01 Even if you itemize, still work or delay Social Security4:43 3 conditions: SSN, a joint return (separate = $0), income5:03 The income phase-out: $75,000 single, $150,000 married5:49 Schedule 1-A: why it can slip right past you6:06 The fix: check Schedule 1-A, amend 2025 if it's missing6:36 Trap 2: Giving to charity and getting nothing for it7:02 New for 2026: deduct up to $1,000 / $2,000 without itemizing7:22 The fine print: cash, public charities, a hard cap8:17 Itemizers: the new 0.5% floor on charitable gifts8:57 The fix: keep receipts, check your 2026 return9:20 Trap 3: Taking the standard deduction out of habit9:36 The SALT cap jumps from $10,000 to $40,0009:56 When itemizing could beat the standard deduction10:15 What you give up when you itemize (you keep the $6,000)10:44 High earners: the SALT cap shrinks above ~$500,00011:08 The fix: run your return both ways every year11:27 Trap 4: Treating temporary tax breaks as permanent11:52 Expiration dates: senior deduction 2028, SALT cap 203012:05 What's permanent: brackets, charity rules, $15M estate exemption12:46 Windows, and the 'convert before 2026' deadline that's gone13:17 The fix: put an expiration date on every tax break13:31 Recap: the 4 traps14:16 A tax break is a tool, not a gift: the free one-pagers14:49 A free second opinion on your return15:14 Next: Part 2, Roth conversions, IRA giving and MedicareThis is Part 1 of 2 on the 2025 tax law: the mechanics. Part 2 puts these rules to work in Roth conversions, giving straight from your IRA, and the Medicare math underneath.Want a fiduciary second set of eyes on your own return? Book a free, no-pressure conversation: https://www.chat.waynefirebaugh.com/ABOUT WAYNEYou've been marketed to your whole life. This show fights back. Wayne Firebaugh is a CPA, CFP® and fee-only fiduciary with 25+ years helping retirees avoid costly tax and money mistakes. No commissions, no products to sell.Wayne Firebaugh Inc. is a fee-only firm registered as an investment advisor in Virginia and does not sell commissioned products. Everything in this episode is general education, not personalized investment, tax, or legal advice. Your situation is your own, so please see a professional before you act.

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