{"id":10428,"date":"2025-07-20T13:57:23","date_gmt":"2025-07-20T17:57:23","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=10428"},"modified":"2025-07-20T14:03:15","modified_gmt":"2025-07-20T18:03:15","slug":"tax-break-for-seniors-trump-bill-includes-temporary-6000-deduction","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=10428","title":{"rendered":"Tax break for seniors: New law includes temporary $6,000 deduction"},"content":{"rendered":"<div class=\"byline yf-1k5w6kz\">\n<div class=\"byline-attr yf-1k5w6kz\">\n<div class=\"byline-attr-logo yf-1k5w6kz\">President Trump\u2019s <a class=\"link yahoo-link\" href=\"https:\/\/finance.yahoo.com\/news\/house-passes-trumps-big-beautiful-bill-as-opponents-flip-183411872.html\" data-i13n=\"cpos:1;pos:1\" data-ylk=\"slk:sweeping domestic policy bill;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" data-rapid_p=\"8\" data-v9y=\"1\">sweeping domestic policy bill<\/a> that was signed into law on July 4 provides a $6,000 boost to senior citizens\u2019 standard deduction from 2025 through 2028.<\/div>\n<\/div>\n<\/div>\n<div class=\"body-wrap yf-40hgrf\">\n<div class=\"body yf-1ir6o1g\">\n<div class=\"atoms-wrapper\">\n<p class=\"yf-1090901\">The new temporary tax break \u2014 $6,000 for individuals and $12,000 for couples \u2014 is for tax filers age 65 and older. It starts phasing out for those who earn over $75,000 ($150,000 for couples).<\/p>\n<p><em><a href=\"https:\/\/finance.yahoo.com\/news\/tax-break-for-seniors-trump-bill-includes-additional-6000-deduction-204604211.html\">Read on Yahoo Finance<\/a><\/em><\/p>\n<p class=\"yf-1090901\">\u201cLow-income seniors won\u2019t benefit at all, and nor will very high-income seniors,\u201d Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, a nonpartisan group that advocates for fiscal responsibility, told Yahoo Finance.<\/p>\n<p class=\"yf-1090901\">\u201cThe biggest beneficiaries are upper-middle-class seniors with significant wealth, who have a lot of discretion over how much income to realize in a given year,\u201d he said.<\/p>\n<p class=\"yf-1090901\">To be clear, this provision does not eliminate taxes on Social Security benefits as\u00a0<a class=\"link \" href=\"https:\/\/www.whitehouse.gov\/articles\/2025\/07\/no-tax-on-social-security-is-a-reality-in-the-one-big-beautiful-bill\/\" target=\"_blank\" rel=\"nofollow noopener\" data-i13n=\"cpos:2;pos:1\" data-ylk=\"slk:Trump promised;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"9\" data-v9y=\"1\">Trump promised<\/a> in the campaign. It is a temporary income tax deduction, not a cut in the Social Security tax.<\/p>\n<p class=\"yf-1090901\">The new deduction could also accelerate\u00a0<a class=\"link yahoo-link\" href=\"https:\/\/finance.yahoo.com\/news\/social-security-fund-could-run-out-in-8-years-trustees-say-is-there-hope-222009892.html\" data-i13n=\"cpos:3;pos:1\" data-ylk=\"slk:Social Security and Medicare insolvency;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" data-rapid_p=\"10\" data-v9y=\"1\">Social Security and Medicare insolvency<\/a>\u00a0by a year, to 2032, per an\u00a0<a class=\"link \" href=\"https:\/\/www.crfb.org\/blogs\/obbba-would-accelerate-social-security-medicare-insolvency#:~:text=We%20estimate%20the%20One%20Big,today's%20youngest%20retirees%20turn%2069.\" target=\"_blank\" rel=\"nofollow noopener\" data-i13n=\"cpos:4;pos:1\" data-ylk=\"slk:analysis from the Committee for a Responsible Federal Budget;cpos:4;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"11\" data-v9y=\"1\">analysis from the Committee for a Responsible Federal Budget<\/a>.<\/p>\n<p class=\"yf-1090901\">Some background: Most lower-income seniors don\u2019t have enough of a tax liability to claim the new deduction. In 2022, the<a class=\"link \" href=\"https:\/\/www.ncoa.org\/article\/get-the-facts-on-economic-security-for-seniors\/\" target=\"_blank\" rel=\"nofollow noopener\" data-i13n=\"cpos:5;pos:1\" data-ylk=\"slk:median income;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"12\" data-v9y=\"1\">\u00a0median income\u00a0<\/a>of older adults was $29,740, according to the National Council on Aging.<\/p>\n<p class=\"yf-1090901\">The majority of taxpayers claim the standard deduction, which is $15,000 (or $30,000 for couples) for 2025. Seniors who are single filers already qualify for an additional deduction of $2,000. (If you&#8217;re married, filing jointly or separately, it&#8217;s $1,600 per qualifying individual.)<\/p>\n<p class=\"yf-1090901\">This new short-term deduction raises that amount by another $6,000.<\/p>\n<h2 id=\"not-a-social-security-tax-cut\" class=\"header-scroll yf-gn6wdt\"><strong>Not a Social Security tax cut<\/strong><\/h2>\n<p class=\"yf-1090901\">Taxation of Social Security benefits is a hot-button issue and often catches seniors at modest income levels by surprise.<\/p>\n<p class=\"yf-1090901\">Most states do not tax Social Security benefits, but about 40% of people who get Social Security must pay federal income taxes on their benefits, according to the Social Security Administration.<\/p>\n<p class=\"yf-1090901\">If you file a federal tax return as an individual and your combined income from all sources, including your Social Security benefit, is between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. If your income exceeds $34,000, <a class=\"link \" href=\"https:\/\/www.ssa.gov\/faqs\/en\/questions\/KA-02471.html\" target=\"_blank\" rel=\"nofollow noopener\" data-i13n=\"cpos:7;pos:1\" data-ylk=\"slk:up to 85%;cpos:7;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"14\" data-v9y=\"1\">up to 85%\u00a0<\/a>of your benefits may be taxable.<\/p>\n<p class=\"yf-1090901\">For joint filers, if you and your spouse have a combined income between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits; if it&#8217;s more than $44,000, up to 85% of your benefits may be taxable.<\/p>\n<p class=\"yf-1090901\">\u201cThat&#8217;s a big shocker for our clients,\u201d Ryan Haiss, a certified financial planner at Flynn Zito Capital Management in Garden City, N.Y., told Yahoo Finance.<\/p>\n<div class=\"read-more-wrapper\" data-testid=\"read-more\">\n<p class=\"yf-1090901\">\u201cA lot of our clients exceed the $44,000 of combined income for Married Filing Jointly, and it is just something that is understood, and we consider when planning for retirement,\u201d Haiss added.<\/p>\n<div class=\"atoms-wrapper\">\n<div class=\"wrapper yf-eondll\" data-testid=\"inarticle-ad\">\n<div id=\"sda-INARTICLE-831855e5-95c3-4aa9-aedd-cd01bc974571-3\" class=\"sdaContainer dv-all sda-INARTICLE-831855e5-95c3-4aa9-aedd-cd01bc974571-3 yf-1m4k8v7 overflow margin visible placeholder\" data-testid=\"ad-container\" data-ad-unit=\"\/22888152279\/us\/yfin\/ros\/dt\/us_yfin_ros_dt_mid_center\" data-ad-size=\"970x250,728x90,300x250\" data-ad-region=\"main-dynamic\" data-ad-loc=\"mid_center_3\" data-google-query-id=\"COLl5Jr_y44DFdUK0AQdxqIicg\"><a class=\"link \" href=\"mailto:%20kerry.hannon@yahooinc.com\" data-i13n=\"cpos:9;pos:1\" data-ylk=\"slk:Have a question about retirement? Personal finances? Anything career-related? Click here to drop Kerry Hannon a note.;cpos:9;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"21\" data-v9y=\"1\"><strong><em>Have a question about retirement? Personal finances? Anything career-related? Click here to drop Kerry Hannon a note.<\/em><\/strong><\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"read-more-wrapper\" data-testid=\"read-more\">\n<p class=\"yf-1090901\">The new deduction could be a meaningful benefit for middle-income retirees, helping lower their overall tax bill. However, Haiss said, \u201cbecause of those income limits, many higher-income retirees, especially those already taking RMDs and collecting Social Security, likely won&#8217;t qualify.\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"read-more-wrapper\" data-testid=\"read-more\">\n<p class=\"yf-1090901\">Most of the nearly 9 in 10 Americans age 65 or older collecting Social Security don\u2019t pay tax on this income and it\u2019s the bulk of cash they use to pay living expenses. The average monthly benefit is $1,975, which adds up to less than $24,000 a year.<\/p>\n<div class=\"byline-attr yf-1k5w6kz\">\n<div class=\"byline-attr-logo yf-1k5w6kz\"><a class=\"primary-link fin-size-small yf-u4gyzs\" href=\"https:\/\/finance.yahoo.com\/author\/kerry-hannon\/\" target=\"_self\" data-ylk=\"elm:author;elmt:link;itc:0;slk:Kerry%20Hannon;sec:content-canvas\" data-rapid_p=\"2\" data-v9y=\"1\"><img decoding=\"async\" class=\"byline-attr-logo-img yf-1k5w6kz\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/Olan1HsJUUhnCF9Sfy4xnA--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTgwO2g9ODA7Y2Y9d2VicA--\/https:\/\/o.aolcdn.com\/images\/dims?image_uri=https%3A%2F%2Fo.aolcdn.com%2Fimages%2Fdims%3Fimage_uri%3Dhttps%253A%252F%252Fo.aolcdn.com%252Fimages%252Fdims%253Fimage_uri%253Dhttps%25253A%25252F%25252Fs.yimg.com%25252Fos%25252Fcreatr-uploaded-images%25252F2023-07%25252F41712030-1c23-11ee-bcf7-7d286db2677e%2526compress%253D1%2526progressive%253D1%2526quality%253D75%2526client%253Dhawkeye%2526signature%253D1de715733bdefcb02d735079f8145447d5b31ff0%26compress%3D1%26progressive%3D1%26quality%3D75%26client%3Dhawkeye%26signature%3D850fb3720e7261df724b58ed79f7f65a79a681be&amp;compress=1&amp;progressive=1&amp;quality=75&amp;client=hawkeye&amp;signature=4f2b35afece555fd336b1d5801a4fe34b86903bf\" alt=\"Kerry Hannon\" \/><\/a><\/div>\n<div>\n<div class=\"byline-attr-author yf-1k5w6kz\"><a class=\"primary-link fin-size-large noUnderline yf-u4gyzs\" href=\"https:\/\/finance.yahoo.com\/author\/kerry-hannon\/\" target=\"_self\" data-ylk=\"elm:author;elmt:link;itc:0;slk:Kerry%20Hannon;sec:content-canvas\" data-rapid_p=\"3\" data-v9y=\"1\">Kerry Hannon<\/a>\u00a0<span class=\"byline-attr-meta-separator yf-1k5w6kz\" data-svelte-h=\"svelte-1yy7aps\">\u00b7<\/span>\u00a0Senior Columnist<\/div>\n<div class=\"byline-attr-time-style\"><\/div>\n<\/div>\n<\/div>\n<div class=\"byline-share yf-1k5w6kz\">\n<div>\n<div class=\"menuContainer yf-1l5q6k1\">\n<div class=\"icon fin-icon primary-icn sz-x-large yf-1iuxsdd\" aria-hidden=\"true\"><em>Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming &#8220;<\/em><a class=\"link \" href=\"https:\/\/www.amazon.com\/Retirement-Bites-Securing-Financial-Future\/dp\/154170584X\" target=\"_blank\" rel=\"nofollow noopener\" data-i13n=\"cpos:10;pos:1\" data-ylk=\"slk:Retirement Bites: A Gen X Guide to Securing Your Financial Future,;cpos:10;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"22\" data-v9y=\"1\"><em>Retirement Bites: A Gen X Guide to Securing Your Financial Future,<\/em><\/a><em>&#8221; &#8220;<\/em><a class=\"link \" href=\"https:\/\/kerryhannon.com\/?page_id=9253\" target=\"_blank\" rel=\"nofollow noopener\" data-i13n=\"cpos:11;pos:1\" data-ylk=\"slk:In Control at 50+: How to Succeed in the New World of Work;cpos:11;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"23\" data-v9y=\"1\"><em>In Control at 50+: How to Succeed in the New World of Work<\/em><\/a><em>,&#8221; and &#8220;Never Too Old to Get Rich.&#8221; Follow her on\u00a0<\/em><a class=\"link \" href=\"https:\/\/bsky.app\/profile\/kerryhannon.bsky.social\" target=\"_blank\" rel=\"nofollow noopener\" data-i13n=\"cpos:12;pos:1\" data-ylk=\"slk:Bluesky;cpos:12;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"24\" data-v9y=\"1\"><em>Bluesky<\/em><\/a><em>.<\/em><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/preferences.newsletters.yahoo.net\/subscribe\/mindyourmoney\" target=\"_blank\" rel=\"nofollow noopener\" data-i13n=\"cpos:13;pos:1\" data-ylk=\"slk:Sign up for the Mind Your Money newsletter;cpos:13;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"25\" data-v9y=\"1\"><strong>Sign up for the Mind Your Money newsletter<\/strong><\/a><\/p>\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/finance.yahoo.com\/topic\/personal-finance\" data-i13n=\"cpos:14;pos:1\" data-ylk=\"slk:Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more;cpos:14;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"26\" data-v9y=\"1\"><strong>Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more<\/strong><\/a><\/p>\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/finance.yahoo.com\/news\/\" data-i13n=\"cpos:15;pos:1\" data-ylk=\"slk:Read the latest financial and business news from Yahoo;cpos:15;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"27\" data-v9y=\"1\"><strong>Read the latest financial and business news from Yahoo\u00a0<\/strong><\/a><a class=\"link \" href=\"https:\/\/finance.yahoo.com\/news\/\" data-i13n=\"cpos:16;pos:1\" data-ylk=\"slk:Finance;cpos:16;pos:1;elm:context_link;itc:0;sec:content-canvas\" data-rapid_p=\"28\" data-v9y=\"1\"><strong>Finance<\/strong><\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_toolbar\" href=\"http:\/\/www.hupso.com\/share\/\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/static.hupso.com\/share\/buttons\/share-small.png?w=640&#038;ssl=1\" style=\"border:0px; padding-top:5px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_t=new Array(\"Twitter\",\"Facebook\",\"Google Plus\",\"Pinterest\",\"Linkedin\",\"StumbleUpon\",\"Digg\",\"Reddit\",\"Bebo\",\"Delicious\");var hupso_background_t=\"#EAF4FF\";var hupso_border_t=\"#66CCFF\";var hupso_toolbar_size_t=\"small\";var hupso_image_folder_url = \"\";var hupso_url_t=\"\";var hupso_title_t=\"Tax break for seniors: New law includes temporary $6,000 deduction\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/share_toolbar.js\"><\/script><!-- Hupso Share Buttons --><\/div>","protected":false},"excerpt":{"rendered":"<p>The legislation provides a temporary deduction that will mostly benefit upper-middle class seniors.<\/p>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_toolbar\" href=\"http:\/\/www.hupso.com\/share\/\"><img src=\"https:\/\/static.hupso.com\/share\/buttons\/share-small.png\" style=\"border:0px; padding-top:5px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_t=new Array(\"Twitter\",\"Facebook\",\"Google Plus\",\"Pinterest\",\"Linkedin\",\"StumbleUpon\",\"Digg\",\"Reddit\",\"Bebo\",\"Delicious\");var hupso_background_t=\"#EAF4FF\";var hupso_border_t=\"#66CCFF\";var hupso_toolbar_size_t=\"small\";var hupso_image_folder_url = \"\";var hupso_url_t=\"\";var hupso_title_t=\"Tax break for seniors: New law includes temporary $6,000 deduction\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/share_toolbar.js\"><\/script><!-- Hupso Share Buttons --><\/div>","protected":false},"author":2,"featured_media":10429,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[55,597],"tags":[333,349],"class_list":["post-10428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-security","category-yahoo","tag-retirement","tag-social-security"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2025\/07\/Screenshot-2025-07-20-at-1.56.08%E2%80%AFPM.png?fit=1394%2C670&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p3YFQS-2Ic","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/10428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10428"}],"version-history":[{"count":6,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/10428\/revisions"}],"predecessor-version":[{"id":10435,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/10428\/revisions\/10435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/media\/10429"}],"wp:attachment":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}