Seniors Can Get Tax Breaks from the Senate’s Version of Donald Trump’s ‘One Big Beautiful Bill Act’
SENIORS can get tax breaks from the Senate’s version of Donald Trump’s ‘One Big Beautiful Bill Act’.
People aged 65 and older may qualify for a temporary deduction of up to $6,000 each – available from 2025 through 2028.
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The ‘bonus’ was proposed after Trump’s plan to cut Social Security taxes proved unfeasible
Credit: Getty
Background of the Senior “Bonus”
The senior “bonus” – as it’s been called by The House of Representatives – is being offered instead of Trump’s campaign promise to cut taxes on Social Security benefits.
A tax break on Social Security is not allowed under current budget reconciliation rules.
Since Republicans are using a process called reconciliation to pass their tax bill, they cannot make direct changes to Social Security, officials say.
Details of the Proposed Deduction
The White House has called the proposed deduction a “historic tax break” for seniors.
The full $6,000 deduction would be available to people earning up to $75,000 in modified adjusted gross income or $150,000 for married couples filing jointly.
The House’s version of the “One Big Beautiful Bill Act”, passed in May, includes a $4,000 deduction for seniors aged 65 and older.
But the Senate’s version, introduced on June 16, proposes a $6,000 deduction.
It plans to reduce the deduction faster for higher incomes – phasing it out at 6 percent instead of 4 percent, like the House’s version, Alex Durante, senior economist at the Tax Foundation, told CNBC.
Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center, told the news channel that the faster phase-out means people lose the full benefit more quickly – though the Senate’s version is more generous for those who qualify.
Gleckman said: “It really depends on where you are on the income distribution.”
He said middle-income taxpayers stand to gain the most.
In the House’s version, seniors would be able to claim the deduction whether they use the standard deduction or itemize their taxes.
But not many taxpayers in the income ranges for the deduction itemize their returns, Gleckman said.
Key Facts About the Temporary Senior Deduction
The temporary senior deduction would be in place for tax years 2025 through 2028.
The House of Representatives passed its version of the One Big Beautiful Bill Act on May 22.
Both chambers must agree on the changes before Trump signs it.
Durante says “it’s pretty clear” some form of a senior deduction will make it through.
In his view, scrapping Social Security taxes would have cost more, while the proposed senior “bonus” targets middle-income – not high-income-taxpayers.
To qualify for the break, all taxpayers must have Social Security numbers.
