Summary
Starting next year, American taxpayers who are 65 years and older will be eligible for a new $6,000 tax deduction under the One Big Beautiful Bill Act introduced by President Donald Trump. This temporary deduction will be available for tax years 2025 through 2028 and is intended to provide financial relief for seniors. It complements existing standard deductions and applies to seniors earning below certain income thresholds.
Key Facts
- Seniors aged 65 and older can get a $6,000 tax deduction from 2025 to 2028.
- This deduction comes in addition to the existing standard deduction for seniors.
- For tax year 2026, the extra standard deduction will be $2,050 for single seniors and $1,650 per spouse for married couples.
- The new deduction is for seniors with incomes below $75,000 for individuals or $150,000 for couples.
- The deduction is reduced for seniors earning over these amounts and fully phases out at $175,000 for singles and $250,000 for couples.
- Seniors can claim this deduction whether they use the standard deduction or itemize their deductions.
- The deductions aim to reduce the tax burden on lower-income and moderate-income seniors.
