Senate Republicans seemingly want to deliver a significant new tax break for older adults in the United States. They’ve just proposed a $6,000 “bonus deduction” for those over 65 in their version of President Trump’s signature tax and spending package, dubbed the One Big Beautiful Bill Act.
The move sets the U.S. Senate’s proposal apart from Republicans in the U.S. House of Representatives, who approved a $4,000 bonus deduction last month. Both provisions highlight a GOP push to provide targeted relief for retirees facing rising living costs.
If approved, the Senate’s $6,000 deduction would be available to individuals age 65 and older, with eligibility capped at $75,000 in income for single filers and $150,000 for couples.
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But the provision is designed to be temporary. It would only be available from 2025 through 2028, and would supplement, but not replace, the existing extra standard deduction already available to older adults.
Here’s more of what you need to know.
Senate GOP targets over 65 tax relief with proposed $6,000 deduction
Currently, the U.S. tax code provides an additional standard deduction for those 65 and older, which stacks on top of the regular standard deduction.
As Kiplinger has reported, for the 2025 tax year (returns filed in early 2026), a single filer age 65 or older can claim an extra $2,000, while married couples filing jointly can add $1,600 for each spouse over 65.
For example, a married couple both over 65 would receive a total standard deduction of $33,200 ($30,000 base plus $3,200 extra for age), according to IRS guidelines.
The Senate’s new “bonus” deduction would pile on top of those amounts.
So, for example, under the proposal, a single eligible taxpayer would be able to deduct a total of $23,000 ($15,000 standard + $2,000 age-based + $6,000 bonus), while a qualifying couple would potentially deduct over $45,200 if both are eligible.
Lawmakers say the layered approach shields more taxable income and would reduce the federal tax bill for many retirees.
House vs. Senate: Key differences for retirees
- The House-passed bill included a $4,000 bonus deduction for those over age 65, structured similarly in terms of eligibility and duration.
- The Senate’s $6,000 version is larger, offering an additional $2,000 per filer.
- Both versions would expire after 2028 unless renewed by Congress.
In a summary released by the Senate Finance Committee, the enhanced deduction is described as “slashing the tax burden” of “millions of low and middle-income seniors.”
House Ways and Means Committee Chairman Jason Smith (R-Mo.) said in a statement regarding the House’s $4,000 deduction: “Republicans are keeping President Trump’s promise to help seniors afford the cost of living through an expanded senior deduction.”
No cuts to taxes on Social Security benefits?
Notably, neither the House nor Senate versions of Trump’s “big, beautiful bill” include any direct cuts to Social Security benefits.
During his 2024 presidential campaign, in several rallies, interviews, and social media posts, then-candidate Trump assured older adults that “SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!”
Trump repeated his pledge not to tax Social Security benefits in his 2025 State of the Union address after being elected for his second term.
However, for reasons likely related to both Senate reconciliation rules and revenue impact concerns, lawmakers appear to be using the enhanced deduction as a way to provide financial relief to retirees without modifying the Social Security program.
Note: Under the Senate’s “Byrd rule,” adjustments to Social Security benefits, eligibility, or the program’s structure must go through the standard legislative process, which typically requires 60 votes in the U.S. Senate.
Who benefits most?
If approved, the impact of the so-called “bonus deduction” would vary depending on a retiree’s income and tax situation.
Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, told CNBC that “a median-income retiree earning up to $50,000 a year might see a tax cut of just under $500 annually under the House plan.”
It seems that the Senate’s larger deduction would increase the estimated benefit.
However, data suggest the deduction would be most beneficial to those who have enough taxable income to take advantage of it.
- Those age 65 or older with very low incomes, many of whom already pay little or no federal tax, might see little or no benefit, since deductions only reduce taxable income, not tax owed directly.
- Some policy analysts note that refundable tax credits or other direct assistance might better serve older adults with the lowest incomes.
Over 65 bonus deduction: Looking ahead
As the Senate moves to finalize its version of the bill, the size of the over 65 “bonus deduction” will be negotiated.
So, whether the final legislation will include the Senate’s larger $6,000 provision — or a compromise closer to the House’s $4,000 version — remains to be seen.
Stay tuned.