Good point, R Quinn. For those who are turning 73 this year, they have the option of taking their RMD this year or waiting until 2026 and taking both RMD's next year. So if they have unpredictable income from independent contractor gigs, etc it behooves them to start taking a look now at what their projected incomes will be so they can decide on when to take their RMD and/or wait until Dec to calculate which year to take it in so they don't miss out on the deduction if they otherwise qualify.
Tsk tsk wtfwtjd. You seem to have no compassion for our current party in power who intends to stay in power by offering tidbits to the voters NOW and forgetting to add that these reductions in tax revenue through the cuts will (per many sources) lead to Social Security benefits being reduced one year EARLIER than previously predicted. So we lose out if we live beyond 2032 but shall enjoy our deductions until then ..
Agree - we gain a little bit over the next 4 years but it does not make up for the projected 23% cut in our social security benefits beginning in 2032 (per many sources).
While I am happy for your daughter's sake that she won't have to pay income tax on her tips, I just don't understand how the federal gov can justify tips not being taxed when all other forms of income are taxed. This seems more to be for influencing votes than it does make tax revenue equality. Tips, to me, are the same as my getting paid by my doggy training clients as an independent contractor. I'm paid for my services. She is paid for hers directly by the customer. What am I missing here?
Good point that those taking SS at 62 are not elegible as it is not directly related to SS. It is for anyone over 65 up to $250,000 income (from $150 k to $250k they get a percentage of the deduction). It indirectly reduces the taxable SS as it lowers the AGI but is not a direct deduction from SS tax. In fact in this section of law it does not mention SS at all.
Comments
Good point, R Quinn. For those who are turning 73 this year, they have the option of taking their RMD this year or waiting until 2026 and taking both RMD's next year. So if they have unpredictable income from independent contractor gigs, etc it behooves them to start taking a look now at what their projected incomes will be so they can decide on when to take their RMD and/or wait until Dec to calculate which year to take it in so they don't miss out on the deduction if they otherwise qualify.
Post: Increased Deduction for Seniors
Link to comment from July 7, 2025
Tsk tsk wtfwtjd. You seem to have no compassion for our current party in power who intends to stay in power by offering tidbits to the voters NOW and forgetting to add that these reductions in tax revenue through the cuts will (per many sources) lead to Social Security benefits being reduced one year EARLIER than previously predicted. So we lose out if we live beyond 2032 but shall enjoy our deductions until then ..
Post: Increased Deduction for Seniors
Link to comment from July 7, 2025
Agree - we gain a little bit over the next 4 years but it does not make up for the projected 23% cut in our social security benefits beginning in 2032 (per many sources).
Post: Increased Deduction for Seniors
Link to comment from July 7, 2025
While I am happy for your daughter's sake that she won't have to pay income tax on her tips, I just don't understand how the federal gov can justify tips not being taxed when all other forms of income are taxed. This seems more to be for influencing votes than it does make tax revenue equality. Tips, to me, are the same as my getting paid by my doggy training clients as an independent contractor. I'm paid for my services. She is paid for hers directly by the customer. What am I missing here?
Post: Increased Deduction for Seniors
Link to comment from July 7, 2025
Good point that those taking SS at 62 are not elegible as it is not directly related to SS. It is for anyone over 65 up to $250,000 income (from $150 k to $250k they get a percentage of the deduction). It indirectly reduces the taxable SS as it lowers the AGI but is not a direct deduction from SS tax. In fact in this section of law it does not mention SS at all.
Post: Increased Deduction for Seniors
Link to comment from July 7, 2025