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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Personal Finance / Macroeconomic Trends & Risks
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Author: UpNorthJoe   😊 😞
Number: of 4460 
Subject: OT 2025 taxes
Date: 10/21/25 10:36 AM
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Played around with the AARP Federal tax calculator. It does not take into account the extra deduction that the OBBB will allow.

I'm assuming that this extra deduction will just be added to the standard
deduction, and that # will then be subtracted from total income to arrive at
AGI. This assumes that the AGI income limit is met, otherwise phase out occurs
above the limits of $75,000/$150,000.

So the amount of tax the $6,000 or $12,000 extra deduction will actually
reduce the Federal taxes owed is simply $6,000 or $12,000 multiplied by
your effective tax rate. People are not going to see an extra $6,000 or
$12,000 added to any refund they are due.

Does that sound right ??

------------------------
IRS blurb:
irs.gov - One big beautiful bill act tax deductions for working americans and seniors

"New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.
Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
Taxpayers must:
include the Social Security Number of the qualifying individual(s) on the return, and
file jointly if married, to claim the deduction."
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