16 Things Seniors Born Between 1941-1969 Could Take Advantage Of
The signing into law of new legislation (the One Big Beautiful Bill) last week will bring tax savings to many seniors who receive Social Security retirement benefits.
The bill provides a tax deduction of $6,000 to seniors with individual incomes of up to $75,000 or joint incomes of up to $150,000 per year. The deduction is reduced for incomes above that level and phased out altogether for seniors with individual incomes exceeding $175,000 or $250,000 jointly.
“The provision does not entirely end taxes on Social Security,” The Senior Citizens League, a non-partisans seniors group, posted on July 9. “Still, it would zero out the Social Security tax burden for 88 percent of seniors, according to an estimate by President Trump’s Council of Economic Advisers. That’s up from 64 percent of seniors who are currently exempt from Social Security taxes, meaning about 14 million additional seniors will benefit from the change. ”
The tax relief is essentially an addition to the existing standard deduction for those 65 and older, and will be available from 2025 through 2028.
Seniors can currently claim a standard deduction of $15,000 (or $30,000 for couples), plus an additional senior-specific deduction of $2,000 (or $3,600 for couples). The bill raises the standard deduction by a few hundred dollars.
Eligible tax filers can take the extra tax deduction whether they itemize deductions on their returns or not.
“This is a historic step forward for America’s seniors,” said Social Security Commissioner Frank Bisignano. “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”