00:00Welcome to a critical update on your financial future.
00:03The one big beautiful bill is now law, bringing significant changes to social security.
00:09And while some aspects seem like a dream come true for seniors,
00:13there's a looming shadow that demands your attention.
00:16And while that didn't fully materialize, the new bill offers a substantial tax break.
00:21Starting this year, if you're 65 or older, you can claim an additional $6,000 tax deduction,
00:27or $12,000 for married couples filing jointly.
00:31The program relies heavily on taxes, including those on benefits, to pay out to current retirees.
00:37The average monthly social security benefit is already just over $2,000,
00:42barely enough to cover essential living costs.
00:45While the tax break offers immediate relief,
00:47it's crucial to consider the broader implications for social security's future.
00:52This underscores the critical need for personal savings to secure your retirement.
00:56For years, social security has been paying out more than it receives,
01:01drawing from its trust funds.
01:02Before this bill, estimates from June 2025 projected the trust funds would be depleted by 2034,
01:09leading to potential benefit cuts of nearly 20%.
01:12Now, with less tax revenue coming in,
01:15these deductions will accelerate the depletion of the trust funds,
01:19potentially moving that 2034 deadline even closer,
01:22and increasing the severity of future benefit reductions.
01:25This means that a staggering 88% of seniors receiving social security
01:29could pay no federal tax on their benefits.
01:33This isn't a new exemption, but rather an expansion.
01:36Building on the 64% of seniors who already enjoyed tax-exempt benefits,
01:41it's certainly a welcome relief for many retirees,
01:44putting thousands of dollars back in their pockets annually.
01:47Let's start with the good news.
01:48President Trump's administration promised to eliminate federal taxes on social security benefits.
01:53This generous deduction is only temporary, expiring in tax year 2028.
02:00After that, your tax bill could jump right back up.
02:03Plus, there are income limits.
02:06The deduction phases out for individuals earning over $75,000,
02:10and for joint filers above $150,000,
02:13disappearing entirely at $175,000 and $250,000 respectively.
02:19This isn't a long-term solution, and its temporary nature creates uncertainty.
02:25But here's where the beautiful part gets complicated.
02:28The most concerning aspect, however, lies in its impact on social security's already strained finances.
02:35This means that while you might enjoy a short-term tax break,
02:39it could come at the cost of your long-term social security stability.
02:42So, what can you do?
02:44Be aware of these changes and plan your finances accordingly.
02:48Money expires
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