This is how you qualify for profit

president Donald Trump’s “Big, Beautiful Bill” promises the first new tax cut for older Americans since 2017. This is a temporary “senior bonus” deduction that will reduce the taxable income of many retirees to $6,000 each year between 2025 and 2028.

In the version passed by the Senate, all filers over the age of 65 can subtract $6,000 ($12,000 for a couple) from their income, regardless of whether they are itemized or not. One big beautiful bill law in the House sets the figure at $4,000 per person, the Washington Post reported.

Both Chambers have completely abolished the amount for revised adjusted gross revenue, up to $75,000 for singles and $150,000 for joint filers. They disappear completely above $175,000 and $250,000 respectively.

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The most common are middle-income retirees. Analysts at Kiplinger’s estimates said that based on the Senate plan, couples who win $100,000 can save about $1,600 on federal taxes.

Low-income seniors who already have little or no tax on Social Security will either have little or no savings while high-income retirees are phased out. “It targets people who need more help,” he said. Howard Greckman of the Urban Blue Kings Tax Policy Center in a statement to the Washington Post.

Responsible Federal Budget Committee It said that senior bonuses will be pegged for around $30 billion a year along with the bill’s broader tax extensions, and that social security trust fund fatigue days can be pushed into late 2033 by paying benefits from late 2033. Tax Foundation calculates If Senate numbers win, the four-year deduction alone could cost $90 billion, and up to $250 billion if it becomes permanent.

What’s next: House and Senate negotiators will need to settle the $6,000 and $4,000 figures before the final vote is expected before the July 4 break. The Trump administration argues that the deduction “reduces taxes on social security” without changing the benefits formula, providing “historic tax relief” for older people.

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