(FOX News) - Now that the Tax Cuts and Jobs Act is signed into law many Americans will realize some kind of tax cuts. For seniors, depending on their retirement income, some will receive tax cuts while others will see no change, and some may even be worse off.
“Recently enacted changes in the tax law will increase both the numbers of taxpayers whose Social Security benefits are taxable and the portion of Social Security income that people will pay in taxes,” says The Senior Citizens League’s Social Security and Medicare policy analyst Mary Johnson.
Johnson discussed with Fox Business what the new tax legislation might mean for those nearing or in retirement.
Boomer: How will recent changes in the tax law affect Social Security beneficiaries?
Johnson: About 56 percent of all Social Security households pay taxes on a portion of their Social Security benefits. On average, those households pay about 6.7 percent of their benefit income in taxes. While the new law is expected to lower taxes for many people, it did not change the income thresholds that subject Social Security benefits to taxation, which remain $25,000 for individuals and $32,000 for couples filing jointly. What the new tax law may do is lower the amount of other income subject to taxation.
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