The OBBBA creates a $6,000 annual deduction for taxpayers 65 and over starting in 2025. The deduction phases out for income above $75,000 (single) or $150,000 (joint). The tax break expires in 2028, so retirees should make the most of it.

President Trump promised to eliminate taxes on Social Security benefits but instead added a new $6,000 deduction for taxpayers 65 and over. The deduction is available starting in 2025 and is on top of other deductions. The tax break phases out for income above $75,000 for single filers and $150,000 for married joint filers.

The new $6,000 deduction under the OBBBA is limited based on income, phasing out for singles with $175,000 in income and $250,000 for married joint filers. Taxpayers must provide their Social Security numbers to claim the deduction, which reduces taxable income but does not directly reduce the tax bill dollar-for-dollar.

Seniors have the opportunity to benefit from the $6,000 tax deduction by considering advanced tax planning strategies, such as doing a Roth conversion. Talk to a financial advisor about how to use this temporary tax break to build a more secure retirement. Consider reworking your portfolio to retire earlier than expected.

Retiring earlier than expected is possible for many Americans after answering three quick questions and reworking their portfolios. Take 5 minutes to learn more about how you can benefit from the $6,000 tax deduction and plan for a more secure retirement. Talk to a financial advisor to maximize this opportunity before it expires in 2028.

Read more at Yahoo Finance: Social Security Retirees Get a New Tax Break in 2025. Here’s How to Plan For It