The End of Taxes on Social Security? What Retirees Need to Know

What if taxes on your Social Security benefits disappeared entirely? That’s one of several proposals being floated in Washington, and in this episode, Don and Marc break down what it could mean for retirees. They explain how Social Security benefits became taxable, why outdated income thresholds are causing more people to pay taxes today, and explore the possible reforms being discussed.

 

Here’s some of what we discuss in this episode:

📉 Why more retirees are paying taxes on Social Security

🕰️ How outdated income limits haven’t kept up with inflation

💡 Legal strategies to reduce (or eliminate) Social Security taxes

📊 The "provisional income" formula

💬 State tax considerations for Social Security benefits

 

Resources for this episode:

No tax on overtime or tips and reduction of Social Security tax – Wall Street Journal

https://www.wsj.com/politics/policy/overtime-tax-plan-bill-103db323?st=bdShTX&reflink=desktopwebshare_permalink

IRS – How much of my Social Security benefits are taxable –

https://www.irs.gov/newsroom/irs-reminds-taxpayers-their-social-security-benefits-may-be-taxable

1984 Change to Social Security –

https://www.fool.com/retirement/2025/01/15/average-social-security-benefit-1984-now/

1993 Change to Social Security –

https://www.aarp.org/social-security/history-timeline/

Donald W. Cash Article on Planning in the May 2025 Slott Report –

https://irahelp.com/newsletter/C2PMay2025

 

Get in touch with Don and learn more: https://doncashpodcast.com/