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Time of India

Are you 65 or older? You could get a $6,000 bonus tax deduction under Trump's new law

If you're 65 or older, a major new tax break could be putting money back in your pocket, as much as $6,000 per person , because of a new law that was signed by US president Donald Trump on July 4, as per a report. Donald Trump's new law could give you a $6,000 bonus tax deduction Under Trump's massive tax bill, senior citizens, who are 65 years or above, will qualify for a new bonus deduction from 2025 that's worth as much as $6,000 per taxpayer and $12,000 for couples who file jointly if both spouses are 65 years of age or older, as reported by Bankrate. The deduction applies whether you claim the standard deduction or itemize deductions, according to the report. Legislators created the deduction as a less complicated alternative to repealing taxes on Social Security benefits, something Trump promised during the campaign, as per the Bankrate report. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dukung Orang Terkasih Menghadapi Limfoma: Mulai Di Sini Limfoma Klik Di Sini Undo Mark Luscombe, a CPA and principal analyst for Wolters Kluwer Tax & Accounting in Chicago, said that the new tax break will help out lower-income taxpayers more than ending taxes on Social Security benefits would have, as quoted in the report ALSO READ: Apple to buy Perplexity, valued at $14 billion? Dan Ives says iPhone maker can't build its own AI Live Events Who are eligible? The bonus deduction is temporary and will apply to tax years from 2025 through 2028, according to a Bankrate report. You must be 65 or older at the close of the tax year and have incomes below specified limits: Single filers: Total deduction for those with a modified adjusted gross income (MAGI) of $75,000 or less, reported Bankrate. Married filing jointly: Total deduction available up to $150,000 MAGI, as per the report. Over those income levels, the deduction phases out at 6% of the excess amount. For instance, a single filer with an income of $80,000 would have the bonus deduction cut by $300, to $5,700, according to the Bankrate report. Mark Gallegos, a CPA and tax partner at Porte Brown LLC in Chicago, pointed out that, 'The bottom line is if you're in the modified adjusted gross income that gets this, it will save you on taxes,' adding that this puts 'more money back in people's pockets, and I think that's the whole point,' as quoted by Bankrate. ALSO READ: Putin avenges Operation Spiderweb embarrassment — Ukrainian spy chief assassinated in broad daylight How it works This deduction adds to other tax benefits already being given to taxpayers who are 65 and older, as per the report. In 2025, a single filer aged 65 or older can claim: $15,750 standard deduction $2,000 extra standard deduction for age 65+ $6,000 new senior bonus deduction That's a total of $23,750 in deductions, possibly cutting taxable income by a substantial amount for instance someone who makes about $50,000 a year, according to Bankrate. Luscombe pointed out that "the tax perk's income phase-out will focus it on lower- to middle-income taxpayers,' as quoted by Bankrate. ALSO READ: 7 anti-aging superfoods scientists swear by for a sharper brain in your 70s Fast facts: The new bonus tax deduction Amount: $6,000 per taxpayer 65+ ($12,000 for couples if each is eligible) Income thresholds: Phases out over $75,000 (single) / $150,000 (married) Applies to: Both itemizers and standard deduction-takers In effect: For tax years 2025 through 2028 FAQs Who qualifies for the new bonus deduction? Anyone aged 65 or older by the end of the tax year, with income under certain thresholds, as per the Bankrate report. When does the deduction take effect? It starts with the 2025 tax year (filed in 2026) and runs through 2028, as per the Bankrate report.