"How is it misleading when nearly 9 in 10 (88%) Social Security beneficiaries won't pay income taxes on their benefits in the future?"

Because folks who ONLY get social security already pay ZERO federal income taxes. Even a couple getting the max $5,108/mo, total ~$122,500 income; ZERO income taxes. That's CURRENT law.

It takes other income to make Social Security taxable.

Also...be careful about the results the Trump Administration is claiming: everything in the BBB assumes 4% annual growth.

One analyst company admitted it was "many times the projections". Meanwhile, Deloitte is predicting growth lower than inflation.

For a married couple, I ran the most extreme numbers I could find: maxing out every year, waiting until 70 to start ...

Just under $122,600 income. ZERO federal taxes due.

Even another $6,250 in interest wouldn't trigger income taxes.

Or $10,000 in dividends ... as long as at least $6900 are qualified dividends (Abbott, J&J, Walmart, et Al=all 100% qualified)

Idependant, everything you posted in #8 was spot-on. Nice analysis; It shows you've got a full understanding.

Frankly, I'm a bit stunned by the numbers I'm running; they're from BEFORE the additional 12K reduction of taxable income for seniors.

WITH the higher deduction, the qualified dividends could be $28,500, in addition to the $122,600 Social Security ...

And ZERO income taxes due.

Holy Fakk!

" run some numbers using that info?"

Okay, let's add stuff:

Still using 70yr olds w/max SS. $122,600.

Add $13,000 in wages, add $2,400 in overtime, add $25,000 in tips.

$163,000 of income. ZERO federal income taxes due.

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That said, the above scenario would pay $3100 in PAYROLL taxes during the year.

Note: I didn't include the max overtime or tips for a couple, because income taxes begin after $13k of wages ...

And it would be a red flag to have too high a percentage of overtime (eg, over 40% might trigger an audit).

Then again, I'm sure it's mathematically possible for a 70 yr old couple to have $170K of income and owe ZERO federal income taxes.

" So the letter was accurate."

No, it wasn't. There are several errors, including the statement about eliminating taxes on Social Security. No such provision exists.

Also, the 88% claim doesn't pass the smell test...especially when you realize 4% compounded growth is baked into the claims. Nor when you realize half those people ALREADY pay no income taxes on their Social Security.