Any questions on the new tax law?

@ItalianScallion There is a new 6,000 deduction for 2025 per individual for those 65 and over (so 12,000 per married couple). Until the forms come, out can’t be 100% sure but as explained, it will reduce ones taxable income by 12k which determines how much of your social security will be included in your taxable income-anywhere from zero to 85%.

@Felton10 @ItalianScallion And that new deduction is for 25-28 only, unless extended. Funny how business deduction are permanent and the scraps for old folks are temporary. “I got your vote, now go and suffer!”

@Felton10 @ItalianScallion Some 65 year olds will benefit from the added deduction even though they don’t get SS. I didn’t start until I was 68.

@speediedelivery Good question-I could not find anything (including on the IRS website) that said SSDI payments for those under 65 allows them to deduct the 6,000.

But a caveat-since the law is so new and applies to 2025, interpretations and other rulings have yet to be published so they might be hope that further official info on the law might say that it applies to you.

@richrauch https://www.whitehouse.gov/articles/2025/08/president-trump-delivers-on-social-security-promise-stronger-faster-and-more-secure-for-all-americans/

In addition to this white house press release, last week every time he opened his mouth he said it.

Is simply not true for depending how much SS you get, for high income tax payers and and the deduction only lasts for 3 years like most of the tax breaks that go into effect this year.

@Felton10 you mean where it says, “the vast majority of seniors receiving Social Security will no longer pay taxes on that income”?

That doesn’t say “all”, does it?

@richrauch Did you even open the link I sent you and see the White House Statement which said " delivering no taxes on Social Security through the One Big Beautiful Bill" and hear what Trump has been lying about all last week-obviously not.

@Felton10 of course I opened the link. I even quoted from it. Whatever, bub.

@Felton10 @richrauch He was signing an executive order which has no effect on taxes. This is not to be confused with the Big Beautiful Bill, which he did NOT put in a no tax clause for SS. He and other repubs thought it was more important to focus on people that actually contribute to their campaigns ie: billionaires. So THEY got their wish list and he is signing a blank piece of paper for no tax on SS which has no effect. Congress must make that law.

@Felton10 @Kyser_Soze @richrauch Yes. The IRS only has to follow laws, not executive orders, not lawsuits they lose in court… Just laws that are passed.

@kittykat9180
Brilliant… And you learned extra as well.

@kittykat9180 My read was yes that loophole has been closed - not to mention there is a max you can now borrow as an undergrad or grad student so the better part of wisdom is not to take out loans unless you have to in case you really need them as a student.

Everyone needs to remember that the pause for getting a 1099-C ends when you meet the number of payments you need to make and there is still a balance left is 1/1/26 (getting a 1099-C means you pay taxes on any written off amount unless you are in a couple of the special programs like the public service, teach, etc. programs where you aren’t going to get one anyway).

AND there has been one major change. Now EVERYONE who has their loans discharged through disability (not just those who had them discharged via the VA) will not get a 1099-C in the future either.

There are 3 ways to have your student loans discharged via disability are

1. via the VA
2. va getting social security disability
3. physician’s letter - which anyone 65+ has to use anyway, and those trying to get it via #1 or #2 can get their loans dealt with sooner going route #3. Be aware that going route #3 does NOT affect what goes on when you are trying to get SS disability.

That form is on the Federal Student Aid website. It has been simplified.

1. You fill it out online (or print a hard copy).
2. Have it sent to your physician who signs it (and his/her license number needs to be legible or it will be rejected) - to do that you need an email address for the office for the website to send it, otherwise you have to print it when done and take it or snail mail it.
3. Your physician’s office sends it back
4. Upon receipt (unless you call them to tell them you are doing this) your loans go into forbearance so no payments due.
5. About 30-45 days later you should have a decision (pretty much automatic if the form is filled out correctly)
6. You have a 3 year monitoring period (with your loans in forbearance)
7. Finish that successfully and they are forgiven.

BUT doing this affects you with respect to future school loans so read that site carefully!!

PS - some useful sites

This one links to changes and updates in the student loan world:
https://ticas.org/affordability-2/reconciliation-2025-borrower-faqs/

The Federal Student Aid website is:
https://studentaid.gov

The application: DISCHARGE APPLICATION: TOTAL AND PERMANENT DISABILITY, is on
https://studentaid.gov/tpd-discharge/

If you want a copy of the directions/information I created for this whisper me and I will send the pdf to you (presuming I can upload a pdf that is, if not I’ll have to email it)

@chienfou I am a big nerd. I graduated with my master’s in 2010 and I’m still taking classes.
In spring and summer I took Python. This fall I’m taking HTML/CSS, SQL, and Python.

Oh yeah - If you are in default or headed that way - once you are in default then garnishments of wages, garnishment of social security (15% unless that takes you below $750/mo) and your IRS refund (so owe each year under the limit to be penalized if you are worried about that) being taken is starting back up soon - last I read this was going to be September but that has been pushed back more than once. The better part of prudence is to call your servicer now. If you do not know who your servicer is (some have changed and not everyone has gotten notified of that) then look on:
https://studentaid.gov

@kittykat9180
Likewise. I like school.
When the hospital offered to send me to get my RN license I told them I’d learn AC repair if they would pay for it…

@chienfou @kittykat9180 AC = Ascending Colon?

()

@chienfou @kittykat9180 @macromeh
Maybe ChienFou forgot the L from ACL?

J. K, I know that HVAC was the intended vocational training CF was volunteering to be trained in.

@mbersiam It was only tips and overtime for folks up to a certain amount (of which I don’t remember and am too lazy to look it up). EDIT Felton just answered that below me.

If you are salaried there is no overtime even if you work more than 40 hours a week. If you are salaried and your employer is paying you more then you are lucky as many don’t do that. If you are hourly then there are different laws that need followed. Turning in your employer though for breaking laws may mean you are paid zero dollars an hour sitting at home in front to the antenna TV (even though technically whistle blowers are not supposed to be punished).

@Kidsandliz I’m paid hourly. so I get paid straight pay for hours over 40 per week.

@mbersiam As long as you are in a “non-exempt” job your company is required to pay you a minimum of time and a half. You’d have to ask HR is your job is considered exempt or non-exempt. If that is risky use the half hour fee advice from an employment attorney and ask if your job and job description is typically exempt or non-exempt.

@mbersiam free not fee advice