THE MALDEN ADVOCATE–Friday, May 1, 2026 MAYOR | FROM PAGE 2 One for details.] On the education front, while A FEW WORDS ON THE TAXATION OF SOCIAL SECURITY BENEFITS f your only source of income is social security benefits, none of your social security benefits will be taxable. However, if you have other sources of income, the amount of your social security benefits that will be taxable will depend upon your provisional income (PI). PI equals the total of (1) tax-exempt interest, (2) 50% of your social security benefits and (3) other income items that comprise your adjusted gross income, less certain deductions and exclusions. For a single taxpayer, if PI I is less than $25,000, then the social security benefits are fully tax-free; if PI is between $25,000 and $34,000, then up to 50% of the benefits are taxable. If PI is over $34,000, then up to 85% of the benefits are subject to tax. For a married couple filing a joint tax return, if PI is less than $32,000, then the social security benefits are fully tax free; if PI is between $32,000 and $44,000, then up to 50% of the benefits are taxable; if PI is over $44,000, then up to 85% of the benefits are subject to tax. Your PI will include taxable interest, dividends, capital gain income, W-2 income, net rental real estate income, unemployment income, IRA distributions, pension income, gambling income, etc. Therefore, for many taxpayers, much of their social security income then becomes taxable. The question then becomes how much is taxable? As part of the tax return preparation process, a tax software program will automatically perform the calculation to arrive at the answer. The Big Beautiful Bill provides for a $6,000 deduction for a single person 65 years of age or older. A married couple filing a joint return where each taxpayer is at least age 65 will be entitled to a $12,000 deduction. This is the so-called “no tax on social security” deduction. The deduction begins to be phased out for a single taxpayer and a taxpayer filing as head of household once modified adjusted gross income (MAGI) reaches $75,000 and is completely phased out once MAGI reaches $175,000. For a joint tax return, the deduction begins to be phased out once MAGI reaches $150,000 and is completely phased out once MAGI reaches $250,000. This deduction is available whether you take the standard deduction or you itemize your deductions. Eliminating income taxes on social security would simply have been too costly for our federal government. Such a bill was never going to pass. The $6,000 deduction has helped reduce income taxes for many Americans for the 2025 tax year. The deduction is good until 2028. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. Subscribe to The Advocate: www.advocatenews.net FY27 represented the last year of the Student Opportunity Act (SOA) and we anticipated aid more consistent with prior-year increases under SOA ($5.8 million for FY26), reductions in enrollment offset any increase in aid to the point that state aid as proposed in the House budget is for the minimum per pupil amount under Chapter 70 FY27, a reduction of about $4.8 million in aid. Additionally, this year’s budget shows significantly increased costs for anticipated enrollment at NE Regional Voke as they move into a new and larger facility, while at the same time we reach our full run rate on our annual cost from the debt from the building project. As I’ve communicated previously and extensively, our conversion Page 9 to the GIC (health insurance plan) is expected to yield savings as compared to had we continued to be self-insured. Those savings are reflected in this budget based upon estimates. It’s important to note that only after enrollment is complete and tallied will we know the actual impact of this initiative. We have difficult days ahead as we adjust to reductions in staff while recognizing that the worst is not past us. It will take us working together in every way possible to stay focused on the important work that has to be done while finding solutions to put Malden on a sustainable long-term path. Respectfully submitted, Mayor Gary Christenson Lawrence A. Simeone Jr. Attorney-at-Law ~ Since 1989 ~ * Corporate Litigation * Criminal/Civil * MCAD * Zoning/Land Court * Wetlands Litigation * Workmen’s Compensation * Landlord/Tenant Litigation * Real Estate Law * Construction Litigation * Tax Lien * Personal Injury * Bankruptcy * Wrongful Death * Zoning/Permitting Litigation 300 Broadway, Suite 1, Revere * 781-286-1560 lsimeonejr@simeonelaw.net
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