If they just wanted to communicate changes, since the deduction has nothing to do with Social Security, wouldn’t it have made more sense to send it from the IRS email?
Or at least narrow it down to people who are or will be 65 by 2028. And if it were for information purposes, email to those 61+ now, should have mentioned the expiration of this deduction (tax year 2028), the AGI phase out/limits, and clarify that the deduction applied also to those not receiving SS benefits or even being eligible for them (so deduction does not impact their decision on when to claim SS benefits). That’d have been much more useful than spamming 71 millions households, many of whom will not be impacted directly (outside of being saddled with the extra deficit).
The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. It does so by providing an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned.
The highly political nature of this email is revolting. There is a reason they don’t mention the expiration – they are selling it now as a tax cut, and for the next election they’re going to say that the Democrats will raise your taxes (by allowing this temporary deduction to expire).
I’m against any temporary tax cuts, or at least ones set to expire before 10 years. They are just insidious. It’s human nature to get used/addicted to something good and then hate being deprived of it.
Moro than anything, these temporary cuts are just a loophole. An artifice to pass unsustainable permanent tax cuts that would never pass reconciliation rules. Their only purpose is to bypass the wise limitation to not have tax laws that induce budget deficits. You only need to look at the current policy vs. current law nonsense that was pulled to pass this latest Bloated Bullshit Bill to guess how the next tax reform is gonna play out.
If you should be around there, the marginal tax rates increase by a fair bit as you start to lose 30% of your SALT for every $1 over $500k. They give various examples with dividends, income, CGs, etc.