Kevin Stocklin, in an article published by The Epoch Times, highlighted the passage of the One Big Beautiful Bill Act by the House of Representatives on May 22. This bill includes a temporary tax break for Americans over 65 in the form of a $4,000 deduction. This deduction, termed the “senior bonus,” is aimed at providing relief to lower-income seniors, as opposed to President Trump’s initial promise to eliminate taxes on Social Security benefits.
The House bill allows seniors to deduct an additional $4,000 from their taxable income, regardless of whether they opt for the standard deduction or itemize their returns. This deduction phases out for single filers earning over $75,000 and joint filers making more than $150,000. The duration of this deduction is set from 2025 to 2028, offering potential savings of $480 to those in the 12 percent tax bracket and $880 for individuals in the 22 percent tax bracket.
The decision to introduce the senior deduction instead of completely eliminating Social Security taxes stems from the restrictions imposed by congressional rules, which prevent changes to Social Security-related provisions in reconciliation bills. Additionally, targeting lower-earning seniors ensures that wealthier seniors do not disproportionately benefit from the tax relief.
The article also mentions the White House’s support for the bill, emphasizing the historic tax relief it provides to Social Security recipients. The bill now moves to the Senate for further consideration, with advocacy groups like the American Association of Senior Citizens and the American Association of Retired Persons endorsing the senior bonus as a sensible adjustment that reflects current economic conditions.
While the senior bonus offers less tax relief than eliminating Social Security taxes entirely, it presents a more economically viable solution that does not deplete the Social Security trust fund. With projections indicating a potential 17 percent reduction in benefits by 2035, the $4,000 deduction aims to alleviate tax burdens on middle and low-income seniors without compromising the stability of the Social Security program.