Will AI create the world’s first trillionaire?<\/strong>\u00a0Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need.\u00a0Continue \u00bb<\/strong><\/a><\/p>\n The new $6,000 senior tax deduction has generated a lot of buzz since it was introduced last year. But a big misconception is that the deduction got rid of taxes on Social Security benefits<\/a>.<\/p>\n That didn’t happen. The deduction did not change the rules of how Social Security income is taxed, and neither did the OBBBA.<\/p>\n What the new deduction does is reduce most seniors’ income substantially. That, in turn, gets most Social Security recipients out of paying taxes on benefits, since the requirement to pay those taxes hinges on income.<\/p>\n But the general obligation to pay taxes on Social Security benefits is still there. And higher earners who don’t qualify for the $6,000 deduction most likely won’t see much of a difference as far as those taxes go.<\/p>\n The $6,000 tax break is temporary <\/p>\n Another thing to realize about the new $6,000 senior deduction is that it’s not a permanent fixture of the tax code. The deduction is set to expire in 2028 unless lawmakers vote to extend it.<\/p>\n Temporary tax provisions aren’t uncommon, and there’s a chance the deduction could get renewed. But that’s not something to bank on, which means that even if you’re not required to pay taxes on your Social Security benefits this year, you may have to gear up to start paying those taxes in 2029.<\/p>\n Of course, there are ways to reduce your likelihood of having your Social Security checks taxed three years down the line. Doing a Roth conversion, for example, could lower your risk, since Roth withdrawals don’t count as income in the formula used to determine whose Social Security is taxed. A strategy like that takes planning, though, which is why it’s important to understand that your obligation to pay those taxes could soon return.<\/p>\n All told, the new $6,000 deduction is providing a world of relief for many seniors, especially given the way prices have been soaring. But it’s not the same thing as a repeal of Social Security taxes, and it’s not guaranteed to last beyond 2028. Understanding these nuances could help you better plan for an upcoming tax bill so you aren’t caught off guard.<\/p>\n The\u00a0$23,760\u00a0Social Security bonus most retirees completely overlook <\/p>\n If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known\u00a0“Social Security secrets”<\/a><\/strong> could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $23,760 more<\/strong>… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after.<\/p>\n Many Americans leave money on the table in retirement. Learn more about these retirement strategies and more, available when you join Stock Advisor.<\/p>\n View the “Social Security secrets” \u00bb<\/a><\/strong><\/p>\n The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"A](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/05\/f2429ddf16bbbe1bc52bb7010c1b8000.jpeg\")
Image source: Getty Images. Two separate tax situations <\/p>\n