Webinar Highlights - Senior Bonus Deduction

And so if you have two people that are 65 or older and they're both able to have the senior deduction, you also have to look at what is their income. And this plays a part too in talking about Social Security and when, you know, if both of them have not both taken it, taken it, taken into account what that increased income is going to be. But keep in mind that there is a calculation you can do to figure out if you're in the range to be phased out, 12,000 is a substantial deduction. That's an above the line deduction for seniors for those years. So you can calculate and take a look at what that phase out is, which would be six cents for every dollar that you're within that range. But a great, I think a really great thing for seniors. This is very well received from the clients I've spoken to. Michael Joseph-Centrae, Jr.: Agreed. And one thing to add is that Social Security, while there was the hope, the expectation that it may become a tax free benefit, it wound up not making its way into the final version of the OBBB. So this was lawmakers way to provide an additive tax benefit for folks. So it is an extra perk. Michael Joseph-Centrae, Jr.: The actual value depends on where you fall when it comes to tax brackets, because it's a deduction, not a credit. So the $6,000, if you're in hypothetically a 22% tax bracket, it's going to be worth for a married couple filing jointly about just over $2,000. So you take the $12,000 deduction multiplied by your tax bracket to understand what the tax Michael Joseph-Centrae, Jr.: You know what the true bottom line reduction in your tax liability is going to be. But as you mentioned, there's, you know, some nuances with the phase out, some, you know, specific things to be aware of. So if you ever wanted to reach out to your wealth manager to discuss the bonus deduction in a little bit more detail, you know, absolutely feel free.