Why there's no tax break for Social Security benefits in the new tax bill

Why there's no tax break for Social Security benefits in the new tax bill

Seniors are unlikely to get a break on paying taxes on their Social Security benefits, an issue that impacts more people each year.

Truth Analysis

Factual Accuracy
4/5
Bias Level
3/5
Analysis Summary:

The article appears mostly accurate, stating that seniors are unlikely to get a tax break on Social Security benefits. This is supported by the fact that many states still tax these benefits, and federal taxation remains in place for higher-income beneficiaries. There is a slight bias towards highlighting the negative impact on seniors, but it's not overly pronounced.

Detailed Analysis:
  • Claim:** "Seniors are unlikely to get a break on paying taxes on their Social Security benefits, an issue that impacts more people each year."
    • Verification Source #4: Supports the idea that Social Security benefits are taxed for higher-income beneficiaries.
    • Verification Source #1, #2, #3, #5: Show that some states do not tax Social Security benefits, while others might be considering changes. This suggests the claim is generally accurate but not universally true.
  • The claim that it impacts more people each year is plausible due to factors like inflation pushing more people into higher tax brackets, but this is not directly verifiable from the provided sources.
Supporting Evidence/Contradictions:
  • Verification Source #4: "Social Security beneficiaries with higher incomes pay income tax on part of their benefits." This supports the claim that Social Security benefits are taxed.
  • Verification Source #1: "Residents should then exclude income Arizona law does not tax ... Social Security retirement benefits received under Title II of the Social Security Act." This contradicts the claim for Arizona residents.
  • Verification Source #3: "benefit from tax-free pensions and retirement pay, along with no state taxes on Social Security or investment income. Florida also doesn't..." This contradicts the claim for Florida residents.
  • Verification Source #5: "It would repeal the state income tax on Social Security benefits in the 2024 tax year." This indicates that Kansas is considering changes to Social Security benefit taxation.
  • Verification Source #2: Mentions Social Security benefits in the context of Delaware's personal income tax FAQs, implying that the state addresses the taxation of these benefits.