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The pending law does not affect taxation of Social Security benefits.

What Congress has passed and what we are waiting for the President to sign is that individuals aged 65 through 69 will not lose any of their Social Security benefits if they earn to much (above $17,000 in 2000) from a job. That exemption from losing benefits had previously applied only to people age 70 and older.

Part of an individual's Social Security benefit is still subject to tax no matter what age (even age 70 and above) if provisional income (AGI + muni income + 50% of the Social Security benefit) exceeds $25,000 if unmarried and $32,000 if married filing jointly.
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