check your tax liability

[greenwellg]

We just found that the new tax legislation will reduce our tax liability by around 33%. Both over 65 (easily) so the standard deduction will go up to a total of $12000 above the standard deduction for last year. For a married couple both over 65, last years standard deduction was $31,500. This ADDS 12,000 to that amount bringing it to a total of $43,500 for this taxable year (2025).
We have always taken the standard deduction since we have no significant deductions to itemize. We easily fall into the $250,000 limit for married couples. Generally it is half the amount for single taxpayers whose income does not exceed the $125,000 limit for singles over 65.
As a result of the effects of this new tax law, we will not be making the last two quarterly deposits in 2025 totaling $2400. The new law should drop us below the threshold for the 20% bracket, Pop's estate will add the interest on the CD's his gift now earns for me.
I would suggest everyone here who is over 65 look into the tax consequences for their personal situations.
If you are over 65 and make less that $125k single or $250k married then you stand to lower your tax liability (federal) by $2400. It also lowers your social security liability due to lowering the threshold of being taxed on social security.
We learned this from AARP. I suggest you do YOUR OWN research to assure yourself that you KNOW what you will save and adjust any estimated tax payments or deductions on retirement income to suit your circumstances.
I do not consider us to be rich by any standard, just thought many here could benefit from this new law.
There is nothing political in this post.

 

[Yendor357]

I have an accountant. I pay him to be the expert.

 

[s&wchad]

According to Kiplinger, your $43,500 standard deduction is a little low. It seems you forgot the additional $1600 per person over 65.



We had a lengthly discussion about the BBB in this thread:

B

Thread 'Tax Eliminated on Social Security Benefits - Mouse Print Says NO!'

Jul 7, 2025

Claim of - Tax Eliminated on Social Security Benefits - Mouse Print Says NO!

Mouse Print* – Exposing the strings and catches buried in the fine print.

Mouse Print exposes the strings and catches in advertising fine print.

www.mouseprint.org

Before the bill passed, the Senate parliamentarian ruled that changes to social security could not be made in this type of bill and the provision to not tax social security benefits was completely removed from it.

*MOUSE PRINT:

So how can the Social Security Administration claim the new law includes such a provision? They point to another measure in the law — a new $6,000 senior deduction — that would supposedly offset the income taxes that would otherwise be due on social...

• Bekeart
• Replies: 46
• Forum: The Lounge

• 

 

[greenwellg]

AARP does ours for free.

 

[greenwellg]

s&wchad. I did not do hours of research and it's great to see I can save another few hundred. I just thought it was worth a post to those who MIGHT be making the 3rd quarter deposit which may now be unnecessary. Appreciate the update.

 

[THE PILGRIM]

The Devil is in the details!
Not backing off on withholding until I see the Final Cut.
Don’t count those Pullets until you see them coming through the arrival gate!

 

[65-2x2]

In retirement my income is so low as to be unaffected by the changes. I am not whining about it, as I have zero debt so I do fine on a very modest income. Benefits go to retired people that still have substantial incomes. About 80% of the people on SS will see no benefit at all from the law changes. The way, in general, that the bill that just passed works is that those who don't need it benefit the most.

 

[glenwolde]

I'll look at it again when we get to early September. Our income can vary a lot. There's some weird stuff in that bill. Apparently they changed the deductibility on gambling activities.You can now only deduct 90% of your losses against your winnings. If you win $5,000 one day and lose $5,000 another day, you get to pay taxes on $500! Yowza. Not that I gamble. But still that ain't right.

 

[Richard Simmons]

Regardless of who does or doesn’t “benefit”, any time any American either keeps more of their earnings or has less confiscated by the government is a win IMHO. I’ll never understand why the amount someone earns determines how much they are allowed to keep?

 

[Rustyt1953]

I am blessed as when Ruthie and I wed she worked in the city treasurer's office and was good at what she did.

Since then, and after years of the self-employed retailer nightmare, I have yet to fill out a tax form.

Bless her heart.

 

[pawngal]

I'll believe any benefit when I see it April 2026.
The current administration changes things faster than a hooker changes her underwear.

 

[s&wchad]

In retirement my income is so low as to be unaffected by the changes. I am not whining about it...

Sounds like you're not currently paying any taxes. I wouldn't whine either...

I'll believe any benefit when I see it April 2026.
The current administration changes things faster than a hooker changes her underwear.

The Executive branch can't change bills signed into law. You can bet the farm that these changes will remain in effect until they expire in 2028. I suspect the deductions will be renewed...

 

[Marine Corps Air]

check your tax liability​

Keep your eye focused on that front sight blade!

“Nothing in this bill screams simplification,” said Andrew Zylka, principal at accounting firm UHY. “It’s really adding in more things you need to worry about when you’re filing your tax return.”

The people at 1600 Pennsylvania couldn't move this tax bill through the system fast enough. I worked for a high-technology firm when we lived in Austin TX. There was an expression around the rank-and-file. "We shoot from the hip, but we always shoot a hole in our foot first!"
There are a lot of people who have holes in their feet now.

“We’re pretty confident that we will be able to adapt,” says Miguel Burgos, a CPA at tax-preparation company TurboTax. It may be a few months before the IRS specifies how it’s all going to work in practice, he said, and filing season next year “may require some additional time in tax preparation and some additional information from taxpayers.”

What has now evolved is that a vast array of new tax law provisions, devoid of the instructions and requirements for the accurate preparation of tax returns, both personal (individual) and business, has been passed I just completed two hours of technical training, and I have several more hours to go. The technical instructions are being developed now and should be on the street by November. Don't expect perfection. The IRS could add additional criteria and requirements as late as January 31st. Some of the provisions are retroactive back to January 1st of this year. Other provisions began after July 4th. Many provisions will commence on January 1, 2026. The devil will be in the details. This is notwithstanding the fact that someone has reduced the headcount at the IRS by 20%.

Cheers!

Bill

 

[Warren Sear]

AARP does ours for free.

AARP is anti-Second Amendment. They do not get any of my money.

 

[greenwellg]

The AARP cost is her bill not mine. I did our taxes but the profanity got to her.