THE EVERETT ADVOCATE – FRiDAy, July 18, 2025 Page 15 THE HOUSE AND SENATE: BeaThe new bonus tax deduction W ithin the most recent legislation signed off on by President Trump on July 4, 2025 was a tax provision providing a $6,000 bonus deduction for anyone age 65 or older. For a married couple, this bonus deduction can be worth $12,000 if both spouses are age 65 or older. This tax deduction will be able to be taken on your 2025 federal income tax return. This new tax deduction is in lieu of the “no tax on social security benefi ts” proposal. There are income limits in order to take advantage of this new deduction. In order to obtain 100% of this deduction, your modifi ed adjusted gross income (MAGI) cannot exceed $75,000 if you are fi ling as single. It cannot exceed $150,000 if you are married fi ling jointly. Once your MAGI exceeds these thresholds, the deduction begins to be phased out. Furthermore, this deduction will only apply for calendar years 2025 through 2028. This is a deduction in addition to the standard deduction of $17,750 for a single person, ($15,750 standard deduction plus $2,000 extra for being age 65 or older), $25,625 for a head of household ($23,625 standard deduction plus $2,000 extra for being age 65 or older) and $33,200 for a married couple ($31,500 standard deduction plus $3,200 extra for both spouses being age 65 or older). This new bonus deduction is available to taxpayers whether the standard deduction is taken or itemized deductions are claimed. The value of the bonus deduction is reduced by 6% of the MAGI above the income limits. A single individual age 65 with MAGI of $100,000 will only be able to claim a bonus deduction of $4,500. He or she would lose $1,500 of the tax deduction ($100,000-75,000) x 6% = $1,500. The Tax Policy Institute estimated that not taxing social security benefits at all would cost the federal government $1.5 trillion over a 10 year period. This new tax deduction will serve to help lower income taxpayers than would a no tax on social security benefi ts tax provision if it were passed. A single taxpayer begins to pay taxes on social security benefi ts once MAGI exceeds $25,000. For married couples, that fi gure is $32,000. The no tax on social security benefi ts was just too good to be true. Up to 85% of social security benefi ts are taxable once your income exceeds a certain amount. For a single taxpayer receiving $36,000 in social security benefi ts with 85% being subject to tax due to the income threshold being exceeded, if in a 22% tax bracket, that would cost $6,732 in federal income taxes. The $6,000 deduction will now save $1,320 in federal income taxes, still resulting in $5,512 in federal income taxes paid on the social security benefi ts. Joseph D. Cataldo is an estate planning/elder law attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. con Hill Roll Call records local senators’ votes on proposed amendments to the $60.9 billion fi scal 2026 state budget for the fi scal year that began July 1, 2025, which Gov. Maura Healey signed into law on July 4. There were no roll calls in the House or Senate last week. $350,000 FOR YWCA (S 3) Senate 39-0 approved an amendment that would increase funding for YWCAs across the state by $350,000 (from $650,000 to $1 million. Amendment supporters said the amendment would provide critical funding to support the YWCA’s programs that serve at-risk girls and young women throughout the state. They argued that these funds will help the YWCA expand outreach eff orts, in addition to mental health professionals and social workers, and strengthen essential programming. “I sponsored [the] amendment as I have seen fi rsthand the transformative impact the YWCA has on the lives of young women and girls,” said amendment sponsor Sen. Robyn Kennedy (D-Worcester). “At a time when adolescent girls are facing alarming rates of violence, mental health struggles and social pressure, we must invest in the support systems that uplift and empower them.” (A “Yes” vote is for the additional $350,000.) Sen. Sal DiDomenico Yes $700,000 FOR YMCA (S 3) Senate 39-0, approved an amendment that would increase funding for YMCAs across the state by $700,000 (from $1.8 million to $2.5 million.) Amendment supporters said the amendment will support YMCA programs that address the well-being and social-emotional health of at-risk youth. They argued that funding will go directly to all 28 YMCAs and 700 service locations across Massachusetts to serve and support more low-income youth in mental health and social-emotional learning programs. They noted that funding will also go towards scholarships for middle-income families who do not qualify for subsidies and support summer jobs for youth and teens. “Social-emotional learning helps our young people feel more connected to their peers and their community,” said amendment sponsor Sen. Joan Lovely (D-Salem). “This funding is vital to upholding the good this program does for our young people, assisting them in living full, healthy and happy lives, regardless of their background.” A “Yes” vote is for the additional $700,000.) Sen. Sal DiDomenico Yes PREGNANCY AID (S 3) Senate 39-0, approved an amendment that supporters say would ensure consistency between existing state law and budgetary language regarding eligibility for cash assistance from the Department of Transitional Assistance throughout a medically verifi ed pregnancy. “Cash assistance helps pregnant people access prenatal care and meet basic needs like housing and food security during all stages of pregnancy, improving maternal and infant health outcomes,” said amendment sponsor Sen. Becca Rausch (D-Needham). “Also implemented in more than a dozen other states, this policy uplifts both moms and babies while reducing overall health care costs. It’s a win-win.” (A “Yes” vote is for the amendment.) Sen. Sal DiDomenico Yes ALSO UP ON BEACON HILL DON’T MISS THIS CIVIL RIGHTS EVENT - Federal policy shifts are testing protections for immigrants, reproductive rights, LGBTQ+ individuals, people with disabilities and others—even in states like Massachusetts. As fundamental rights face new threats, what can be done at all levels of government to safeguard vulnerable communities? Join advocates, experts and leaders for a timely forum on the future of civil rights in Massachusetts hosted by MASSterList and the State House News Service on July 28 at the MCLE Conference Center in Boston. Doors open for networking and refreshments at 8 a.m. The program will run from 9 a.m. to 10:30 a.m. Register at: https://events.humanitix.com/civil-rights-ma BAN USE OF CELL PHONES IN SCHOOLS (S 2549) – The Education Committee has recommended passage of a bill which would ban student use of cell phones and other personal electronic devices during classes. The measure would require all public schools and districts in Massachusetts to implement, by the start of the 2026-2027 school year, policies for student use of these devices on school grounds and during school-sponsored activities. The policy may include exceptions for school and student health and safety; students with disabilities; student time spent off campus traveling to or from other learning opportunities; multilingual learners; permission from a teacher or other staff member; emergencies; and any other reasonable exception. The policy must include methods for parents and students to be able to contact one another during the school day if necessary; enforcement provisions; and may diff er for students in diff erent grade levels. Supporters say that students BEACON | SEE PAGE 17
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