Sponsors
The bill provides targeted, near-term tax relief for many seniors (and some middle‑income households) by allowing a sizable, non-itemizable deduction through 2029, but it reduces federal revenue and creates uncertainty when the temporary benefit expires.
Seniors (age 65+) can reduce taxable income by up to $25,000 (or $50,000 for two seniors filing jointly) during 2025–2029, lowering their tax bills; the deduction applies whether or not they itemize, so even those who take the standard deduction benefit.
Higher phaseout thresholds for joint filers and surviving spouses (e.g., $200,000) protect many middle‑income households from full phaseout, extending benefits to middle-class families.
The deduction is temporary and expires after 2029, creating uncertainty for seniors who may face higher taxes when it lapses.
Federal tax revenue will decrease while the deduction is in effect, which could increase deficits or force reductions/offsets in other government programs or spending.
Wealthier seniors with adjusted gross income above the phaseout thresholds receive reduced or no benefit, so relief is concentrated among lower‑to‑middle income seniors rather than being broadly distributed.
Based on analysis of 2 sections of legislative text.
Creates a temporary above-the-line tax deduction for taxpayers age 65+ with filing-status-specific amounts and phaseouts.
Introduced January 20, 2025 by Donald J. Bacon · Last progress January 20, 2025
Creates a temporary tax deduction for people age 65 and older that reduces taxable income whether or not the taxpayer itemizes. The deduction begins for tax years after December 31, 2024 and ends after taxable years beginning December 31, 2029, with different deduction amounts and income phaseout thresholds for single filers, joint filers, surviving spouses, and joint filers where both spouses are 65+.