AUTHOR: Cheryl Low on 11/13/2024 FIRST: luvtoride44afe9eb1e on 11/13/2024 | RECENT: Jonathan Clements on 11/25/2024
Comments
Two bullets on the list caught my eye (see below). I searched the document but I didn't find anything in the JCX-21-25 that addresses these two points. Let me know the page number if you find them in the JCX-21-25 report.
The age for mandatory withdrawals from retirement accounts is adjusted to 75, allowing seniors to keep funds invested longer.
The bill modifies the taxation of Social Security benefits, reducing the tax burden for lower-income retirees.
Thanks, Bill, for posting the proposed tax changes. I didn't know about the enhanced deduction for seniors (senior bonus) of $4,000 per individual (65 & over). This is in addition to the standard deduction of $33,200 (mfj).
"For taxable years beginning in 2025, the amount of the basic standard deduction is $15,000 for an unmarried individual (other than a head of household or a surviving spouse) and a married individual filing a separate return,217 $22,500 for a head of household, and $30,000 for married individuals filing a joint return and a surviving spouse."
"An additional standard deduction is allowed to an individual who has attained age 65 before the close of the taxable year or is blind at the close of the taxable year. For 2025, the additional amount is $1,600 for a married taxpayer (for each spouse meeting the applicable criteria in the case of a joint return) and a surviving spouse. The additional amount for a single individual and head of household is $2,000. An individual who is both blind and has attained age 65 is entitled to two additional standard deductions, for a total additional amount (for 2025) of $3,200 or $4,000, as applicable."
"The proposal adds a deduction for a bonus additional amount for all individuals who have attained age 65 (for each spouse meeting the applicable criteria in the case of a joint return) for taxable years beginning after December 31, 2024, and before January 1, 2029. This additional amount is $4,000 per individual, the “senior bonus amount.” The senior bonus amount phases out for taxpayers with income over a threshold amount of $150,000 for taxpayers filing jointly and $75,000 for all other taxpayers. The senior bonus amount is reduced by four percent of modified AGI in excess of the applicable threshold amount."
I didn't see a proposal for no tax on Social Security benefits in this draft (not surprised).
Love your determination in landing your dream job! Your story is an inspiration to the rest of us. We have 9 grandkids, most of them driving now, and we enjoy their visits and friendship. Safe trip to your new home!
Working from home for 3 years during Covid was a great way for me to transition into retirement. My husband had been retired for several years. When I retired 2 years ago, I was surprised that I didn't miss work at all. I do miss several coworkers and stay in contact periodically via email or text. Unfortunately, my old company went bankrupt, so everyone is scattered across various companies now. I completed a significant amount of prep work before retiring, which helped smooth the transition. We built a new home (downsized), included 'aging in place' features, researched Social Security options and Medicare supplement insurance options, and paid off our mortgage. I also had stopped my HSA contributions and transferred the account to Fidelity. I haven't settled into a routine yet. My purpose (little 'p') is discovering the little things I enjoy and doing more of that. We live a mile from a 2,600 acre park and take advantage of the trails for hiking and horseback riding. My husband golfs twice a week, while I enjoy biking. We're putting in the vegetable/herb garden today. We see the kids and grandkids frequently, and I coordinate a lunch or dinner once a month with friends (12 couples) we've known for 30-40 years (on the 3rd Tuesday). The difficult thing I didn't expect was losing 5 of our friends over the last few years. We traveled extensively over the last 25 years and now enjoy life at our lake home.
I'll take the carrot! Enjoyed the story! Good to know! Interesting that the EO included the statement "This Executive Order does not establish a Central Bank Digital Currency (CBDC)." (glad to hear that.) I recently set up an account on IRS.gov to make estimated tax payments (until I have to start RMDs) and get an IP PIN.
Great post! I'm a fan of dividend stocks, both dividend aristocrats and dividend kings (increased dividends for 50+ years), as well as index ETFs. We use the dividends to 'fill up' the emergency/contingency fund, otherwise we reinvest them.
Thanks for sharing, Norman! That was very helpful. Our expenses were at 65%, but this year they increased to 69% of SS and pensions, similar to what you mentioned.
Comments
Two bullets on the list caught my eye (see below). I searched the document but I didn't find anything in the JCX-21-25 that addresses these two points. Let me know the page number if you find them in the JCX-21-25 report.
Post: JCX-21-25
Link to comment from May 15, 2025
Thanks, Bill, for posting the proposed tax changes. I didn't know about the enhanced deduction for seniors (senior bonus) of $4,000 per individual (65 & over). This is in addition to the standard deduction of $33,200 (mfj).
- "For taxable years beginning in 2025, the amount of the basic standard deduction is $15,000 for an unmarried individual (other than a head of household or a surviving spouse) and a married individual filing a separate return,217 $22,500 for a head of household, and $30,000 for married individuals filing a joint return and a surviving spouse."
- "An additional standard deduction is allowed to an individual who has attained age 65 before the close of the taxable year or is blind at the close of the taxable year. For 2025, the additional amount is $1,600 for a married taxpayer (for each spouse meeting the applicable criteria in the case of a joint return) and a surviving spouse. The additional amount for a single individual and head of household is $2,000. An individual who is both blind and has attained age 65 is entitled to two additional standard deductions, for a total additional amount (for 2025) of $3,200 or $4,000, as applicable."
- "The proposal adds a deduction for a bonus additional amount for all individuals who have attained age 65 (for each spouse meeting the applicable criteria in the case of a joint return) for taxable years beginning after December 31, 2024, and before January 1, 2029. This additional amount is $4,000 per individual, the “senior bonus amount.” The senior bonus amount phases out for taxpayers with income over a threshold amount of $150,000 for taxpayers filing jointly and $75,000 for all other taxpayers. The senior bonus amount is reduced by four percent of modified AGI in excess of the applicable threshold amount."
I didn't see a proposal for no tax on Social Security benefits in this draft (not surprised).Post: JCX-21-25
Link to comment from May 14, 2025
Love your determination in landing your dream job! Your story is an inspiration to the rest of us. We have 9 grandkids, most of them driving now, and we enjoy their visits and friendship. Safe trip to your new home!
Post: Staying Alive
Link to comment from May 11, 2025
I notice this is less common as well. Seems like it would be easy to send a 'thank you' text.
Post: Generational Perspective
Link to comment from May 10, 2025
Working from home for 3 years during Covid was a great way for me to transition into retirement. My husband had been retired for several years. When I retired 2 years ago, I was surprised that I didn't miss work at all. I do miss several coworkers and stay in contact periodically via email or text. Unfortunately, my old company went bankrupt, so everyone is scattered across various companies now. I completed a significant amount of prep work before retiring, which helped smooth the transition. We built a new home (downsized), included 'aging in place' features, researched Social Security options and Medicare supplement insurance options, and paid off our mortgage. I also had stopped my HSA contributions and transferred the account to Fidelity. I haven't settled into a routine yet. My purpose (little 'p') is discovering the little things I enjoy and doing more of that. We live a mile from a 2,600 acre park and take advantage of the trails for hiking and horseback riding. My husband golfs twice a week, while I enjoy biking. We're putting in the vegetable/herb garden today. We see the kids and grandkids frequently, and I coordinate a lunch or dinner once a month with friends (12 couples) we've known for 30-40 years (on the 3rd Tuesday). The difficult thing I didn't expect was losing 5 of our friends over the last few years. We traveled extensively over the last 25 years and now enjoy life at our lake home.
Post: Let’s revisit an important retirement living topic. How’s it going? Great expectations
Link to comment from May 9, 2025
I'll take the carrot! Enjoyed the story! Good to know! Interesting that the EO included the statement "This Executive Order does not establish a Central Bank Digital Currency (CBDC)." (glad to hear that.) I recently set up an account on IRS.gov to make estimated tax payments (until I have to start RMDs) and get an IP PIN.
Post: EO 14249 Mandated Electronic Payments
Link to comment from May 8, 2025
i just disabled it for the specific URL above. I enabled Javascript now. xx
Post: Wherever You Live, Your Home is (Probably) Under-Insured
Link to comment from April 26, 2025
Last year was my first year without a paycheck, so we enjoyed the zero tax on the qualified dividends.
Post: You’ve Come a Long Way, Baby by Marjorie Kondrack
Link to comment from April 26, 2025
Great post! I'm a fan of dividend stocks, both dividend aristocrats and dividend kings (increased dividends for 50+ years), as well as index ETFs. We use the dividends to 'fill up' the emergency/contingency fund, otherwise we reinvest them.
Post: You’ve Come a Long Way, Baby by Marjorie Kondrack
Link to comment from April 26, 2025
Thanks for sharing, Norman! That was very helpful. Our expenses were at 65%, but this year they increased to 69% of SS and pensions, similar to what you mentioned.
Post: Top Five Expense Categories and Inflation Factor
Link to comment from April 25, 2025