Americans are set to see meaningful tax relief starting in 2025, thanks to a sweeping new law the “One Big Beautiful Bill.” This legislation delivers real savings for retirees and working seniors alike and putting more money back in your pocket.
Here’s what AMAC members need to know about what’s in the law, how to claim these deductions, and who qualifies.
- Higher Standard Deduction
One of the most significant changes in 2025 is the higher standard deduction, which applies to all taxpayers who don’t itemize.
- For single filers, the standard deduction increases to $15,750.
- For married couples filing jointly, it rises to $31,500.
You don’t need to do anything special to claim it — simply choose the standard deduction when you file your federal return, and the new amount will automatically apply.
2. Extra Deductions for Seniors
If you’re 65 or older by the end of 2025, you’ll also qualify for an additional senior deduction — on top of the standard one.
- Single filers 65+ get an extra $2,000.
- Married couples where both spouses are aged 65+ get $1,600 each, or $3,200 total.
Again, this is automatic. Just make sure you (or your tax preparer) indicate your age on your return.
3. Special $6,000 Deduction for Seniors with Modest Incomes
In addition to the standard and senior deductions, the new law provides a temporary $6,000 deduction specifically for Americans age 65 and older with modest incomes.
Who qualifies?
- This deduction is designed for seniors whose adjusted gross income (AGI) falls below a certain threshold.
- The exact income limits will be finalized before the 2025 tax season, but it is expected to cover a large share of middle- and lower-income retirees — especially those who rely mostly on Social Security and modest retirement savings.
How to claim it?
- Unlike the standard and senior deductions, this one may require a separate line on your tax form.
- Updated IRS forms and instructions are expected to make this clear, and AMAC will provide guidance as soon as those details are released.
- If you use tax software or a preparer, they’ll help ensure you don’t miss it.
- Other Tax-Friendly Changes
The law also includes additional ways for Americans — including seniors — to save at tax time:
- Tips and overtime pay for most Americans are now tax-deductible at the Federal level.
- Auto loan interest is deductible again.
- The cap on state and local tax (SALT) deductions jumps to $40,000 for households earning under $500,000.
These provisions are especially helpful for older adults who still work part-time, support their families, or live in states with high taxes.
A Victory for Seniors — Thanks to Bold Leadership
At AMAC, we believe good policy happens when leaders listen to the people they serve — and this new law is proof of that. We applaud President Trump and congressional Republicans for pushing the One Big Beautiful Bill through and making seniors a top priority.
We also applaud the tens of thousands of AMAC members who made their voices heard in support of this critical legislation – often on short notice. The One Big Beautiful Bill is more proof that when AMAC members speak, Congress listens.
By increasing deductions, simplifying the process, and ensuring older Americans keep more of what they’ve earned, this law represents a rare and welcome victory for retirees and working seniors alike.
What You Should Do Now
✔️ Know your income: Your adjusted gross income (AGI) will determine if you qualify for the $6,000 senior deduction.
✔️ Plan ahead: If you already claim the standard deduction, the new higher amounts and senior bonuses will happen automatically.
✔️ Get help if needed: Updated forms and guidance will be available before the 2025 filing season — AMAC will keep you informed every step of the way.
✔️Know the truth: Don’t buy into media lies about the OBBB. For a breakdown of the myths vs. reality, see HERE.
At AMAC, we remain committed to fighting for older Americans — and ensuring you have the information and tools you need to thrive. Stay tuned for updates as more details about these tax changes become available.
For now, you can take comfort knowing that relief is on the way — and that your voice, and your vote, continue to make a difference.
It’s all good as far as I am concerned…being well over 65, disabled and not at all wealthy.
Personally, I think once you hit 72, you should be taken off the tax roles all together, across the board….fed, state, any and all. Getting old should have some perks just for the sake of surviving. We older, wiser folks have been jabbed long enough.
I appreciate the deduction for Social Security, but it is still unfair. Our contributions into the system are taxed, and then our “benefit” is also taxed. The payment to the recipient should not be taxed at all.
The original campaign plan was no tax on Social Security. What happened to that?
I am completely against any SALT deductions. Why should someone who lives in a state with high state income tax pay less in federal income tax than those in states with no income tax?
What happened to paying their fair share?
I love all the deductions the Great Big beautiful bill is giving me as a senior. My question is though why should I pay out of my taxes dollars to someone who lives in a high-tax state? If you don’t like the high state taxes don’t vote for them if you can’t vote them out move. It’s your expecting the rest of the country to cover for the Democrat ruling in your state. I think that stinks. But then again Democrats destroy everything they touch and blame it on somebody else
Again the taxes are complicated for seniors. Again make a difference in income. Why not an across the board 6,000 dollar deduction say up to 100,000 income. Until then this is buying votes with a promise which most seniors will not benefit from. Again the democrats in congress let the seniors down. No tax on Soc Sec period.
Thank you President Trump!
There should be no income tax, instead a consumption tax.
What we should really have is a flat tax across the board, that way everyone is taxed at the same rate and all the pandering to certain tax classes wouldn’t happen. Flat taxes could also be used to calculate tax shelters.
I’m not impressed as long as there is an income tax. We should be taxed on our consumption, not on our incomes. A tax on Social Security payments makes it all the worse.
Melody
I live in CA which is near the top of the list of those “high tax” states and I was disappointed to see the politicians buckle to the demands to raise the SALT deduction. Yes I do benefit from it but it is unfair to the states that a more fiscally responsible and removes the incentives for taxpayers in my state to address the overspending with their elected officials.
The name of our pain is Dems Buying Votes with Taxpayer Dollars. So many of their initiatives support that corrupt outcome. NOTHING they do helps taxpayers… and we STILL pay their unearned salaries!
I’m retired. I’m not rich, but I’m not poor. This bill does NOTHING for me. This is a typical Washington boondoggle; you have to be very poor or very rich to get anything. The middle class gets screwed.
these tax breaks are great for seniors still working and collecting Social Security but it doesn’t help folks like me who worked in 2021, 2022, 2023 and 2024 and had our Social Security taxed because of our AGI. the reason I continued to work after retiring was because my Social Security income was insufficient due to the inflation rate and tough economy at that time. I needed to pay down my budget (I also had to use most of my IRA savings which was also taxable income). I’m financially OK now but I would be more comfortable if those additional taxes were refunded back to my savings.
it would be nice if there was some kind of help for those of us adversely effected by ‘bidenomics’ through no fault of our own.
thanks for listening Sandi
No income tax for folks over 72yo, they have been cheated their whole lives by the Government using an un Constitutional law it should be stopped at sometime, for them!
Thank you President Trump for being able to at least get the previous tax rates renewed, but most of the rest of the OBBB turned out to be a debacle! I agreed with the many experts who thought that the momentum of Trump’s big win and the Republican majorities in Congress would carry out his campaign promises with OBBB, without delays and their usual personal political blackmail games! Well, we were so wrong about that! Congress ended up dragging it out until it was necessary to make all those ugly compromises just so that the existing tax rates could be renewed! The Republican majorities were too slim to overcome the “so called” Republicans who selfishly voted against everything and those who put their own personal agendas above all else. Congress is the problem! It has become a “corruptive” institution within our government with no term limits, allowed to give themselves raises and make knowingly false statements on the floor of Congress without penalty. There are too many unsavory characters dictating voting mandates as well as lobbyists allowed to buy votes with their favors and influence. Many long-term Congressional members and family members retire as millionaires while we peons beg for tax relief so we can afford to buy groceries. They laugh their way to the bank while so many honest men and women elected that actually want to do good work like reducing taxes and eliminate waste, fraud and abuse either give up and resign or don’t run for re-election when they are sidelined, railroaded or tricked into compromising situations by evil measures in order to control their votes. I praise those who are able to persevere under these circumstances without falling victim to immense pressures. Hopefully, Trumps agenda and promises can be fulfilled in future separate bills or other means.
It’s a good start. Do we want untaxed SS? Yes! But withvthe opposition fighting so fiercely against Americans, it’s the best we’re going to get for now.
Please tell me what senior citizens, who don’t pay income taxes because their SS income is so low, get.
What bothers me is raiding social security to pay for illegals and those who won’t work.
The only bad thing about the senior deductions is that anyone who is consuming only lying left-wing media will not even know how these deductions will help one pay less in taxes. Thank you President Trump! This is just one reason why I voted for you!
For those of us that are on SS and don’t make enough to file taxes, this does not help us one bit
I am very disappointed that Trump’s promise of no tax on Social Security wasn’t included in his BBB. The alternative deduction was a paltry gesture. Once again, we seniors got thrown under the bus. More importantly, however, Trump shouldn’t be asking for Powell’s resignation; he should be completely eliminating the Federal Reserve. Why should Americans continue to pay interest on fiat money that the Fed creates out of thin air?
NO TAX on social security. I call BS!
what is $3,200 extra dollars off my income tax going to do?
we have constantly and consistently had to withdraw from our 401k’s to make up for the constant increases in insurances, food, car repair, fuel and don’t even try to go to a restaurant . This alone raises our income making it look like we make more than we do. My opinion is the seniors who need help the most got a good screwing on the BBB!
I see nothing in this that will help many retirees that both collect social security and monies from their retirement savings. Trump said no tax on SS benefits. These funds are taxes collected from everyone who worked and are then taxed again as income when paid out. So with zero info on the “means” test of whose earnings will qualify for this deduction, we know nothing more today than yesterday
Salt taxes deductions should be eliminated. States should deal with this not the feds
i am so disappointed in the BIG BEAUTIFUL BILL. This article isn’t a really encouraging one for me read . The one good thing is car loan interest will be a deductible – maybe? The devil is in the details which we do mot have
Well, I wanna know is what happened to no tax on Social Security just like no tax on tips or overtime. To me add a deductions don’t come up to no tax on Social Security.
thanks for the extension of the 2017 tax cuts. Disappointed we are still taxed on Social Security. Still IRMAA penalty on Social Security. And disappointed no increase in Qualified charitable Distributions. A Big Bill but not as Beautiful as it could have been
i would like to work part time, but I won’t if it requires me to pay tax on 50% of my benefits. There are jobs that seniors who want to work, could. But not if they’ll be taxed on their benefits. While I appreciate what has been done, Congress has made the way more complicated than it needed to be.
This does nothing for the Middle Class – screwed again. Most hard working Seniors have worked hard all their lives – they should not be paying taxes on social security, period!! What happened to the “no more taxes on Social Security for our beautiful seniors!! – what a bunch of crock! President George H. Bush all over again – “read my lips, no new taxes!”
The SALT bill sounds like Socialism to me.
Has anyone else noticed that the same leftist Democrats who hysterically squawked that “Trump will take away seniors’ Social Security!” during the 2024 Presidential election cycle, seemed to have forgotten about the mandatory cost of living adjustments wasn’t issued in 2010 and 2011 during the first two years of Barack Obama’s first term? It was said that “there were were no increases in the cost of living that warranted increases in Social Security benefits”. What parallel universe was the Obama regime living in, to make such an asinine statement? Obama-worshipping Social Security recipients gave him a pass for it, but would raise Cain if Obama were a conservative Republican. The SS increases were reinstated in 2012, but only because Obama was running for re-election and wanted Social Security recipients’ votes.
We need a deduction for suffering through the LEFT mania!
How can you say this is “NO TAX ON SOCIAL SECURITY “? Increased deduction is not that. More government double speak????
Thank you so much for the information, AMAC. The AARP did not provide “What-you-need-to-know” like these for American seniors.If they do, those misinformation from them should NOT be trusted.
This is junk. Where did these “Standard deduction” numbers come from??? The chart on IRS form 1040 from 1024, lists the standard deduction as $32,300 for Married filing jointly. On what planet does $31,500 constitute a “rise”.??? It also looks like the additional $6000 is up for discussion. I am not holding my breath on that one. Looks to me like us seniors are taking a hit yet again.
Not clear if you file jointly, but only one of you are over 65.
Thanks AMAC for looking out for us!
Well, it looks like the only ones getting the money are people who file taxes. What about people that paid Medicare and social security onto the government all their lives and don’t draw enough to file taxes??????????
That’s not ‘NO TAX ON SOCISL SECURITY”. Scammed again!
Undoubtedly that is good news to some seniors, but the ones I know are much like we are, and we haven’t paid federal taxes for probably 20 years because that’s how long we’ve been retired. We did pay a little Social Security some minor income but I see nothing in there to help that.
no one is ever satisfied. al least this administration did something . if u are not happy, you can send your savings back to the feds to pay down the debt’
Deductions does NOT I repeat DOES NOT EQUAL 0 ( ZERO) TAXES ON Social Security . Seniors get shafted again !!
Thank You AMAC, always the best information. I would like to know why our local media cannot seem to tell the truth, and will insist on being alarming in the worst way. It is great to have a great news outlet.
I really appreciate the way you broke the tenants of this bill, with regard to seniors, down. Keep this kind of “plain English” on these and other Bills coming!
Not a fan of additional $6000 deduction only being for people under a certain income limit. Saving your money for a lifetime so you can have investment income in retirement was supposed to be the right thing to do but now I get to pay more in taxes for doing the right thing. When other people tell me you have to pay your fair share I ask who are you or anyone else to determine what my fair share is? Do I use the roads or government services more than anyone else, no I don’t. Socialism is built into the tax code and the whole thing needs to be dismantled and rebuilt into something resembling fair to all people and keeping government on a budget not a drunken spending spree. Lets not forget we did not have this tax code when the country was founded and before con men discovered an easy life could be had in government.
What about no tax on SSI?
This will help a lot for sure. God bless President Trump and all the good patriots that made this happen.
This is very helpful. Thank you for breaking it down. I’ll show it to my CPA to make sure I get all in due.
I am happy that Trump tried with the Big Beautiful Bill but it doesn’t help me other than my taxes will not be going up. I worked the same job for 40+ years for a good company that paid well and had good benefits, which I am grateful. I always had a savings account and 401K that I contributed to. I wish just once people like me that had a good work ethic and played by the rules received a break or goody just once from our government. It seems like those that don’t are the ones rewarded. I’m glad when anyone no matter their station in life gets a break but I get tired of giving and never receiving. The tax system is ridiculous and convoluted. I live for the day we get rid of the IRS and all pay a straight 10% tax, no deductions or loopholes. Only businesses should need deductions and accountants. I am already being penalized on my social security because my income is above a certain amount. I am taxed twice on what I do receive and will continue to be since this bill was passed. Republicans need to work harder for taxpayer issues especially if we make conservative gains during the midterms. We need reform for ALL taxpayers, not the few.
This is not at all what he promised while he was campaigning. He promised no taxes on Social Security and instead up to 85% of Social Security benefits can be taxed. In addition these tax benefits for seniors other than the ones already written in to the law about standard deductions increasing annually, will sunset after 2028, meaning will only get about 3 years of tax relief. You’ve been duped.
At one time in this country we had no taxes. We’ve been deceived with the corporation. I believe in the consumption tax, but businesses should not be able to charge these ridiculous fees such as AT&T. Seniors should not have school taxes, property taxes, or social security taxes. I feel we are punished for working hard all of our lives. Also, we have an insurance problem in this country! If you are able to keep yourself healthy and do not ever use the long-term care plan, why should insurance companies upon your death get to keep all that money for their companies when unused premiums should go to your beneficiaries if not used.