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This bill would give older Americans a larger standard deduction on their federal taxes. It raises the extra deduction for seniors from $600 to $5,000, which could lower taxable income and reduce taxes for many people age 65 and older. The bill also says this extra amount would rise over time with inflation so it does not lose value as prices go up.
- The increased deduction would apply to senior taxpayers under the federal tax code.
- After 2026, the $5,000 amount would be adjusted each year for inflation.
- The inflation increase would be rounded down to the nearest $50.
- The change would start for tax years beginning after December 31, 2025.
Official Summaries
Bonus Tax Relief for America’s Seniors Act
This bill increases to $5,000 (adjusted for inflation) the amount of the additional standard deduction allowed for individual taxpayers who are 65 years old or older.
Under the bill, the additional standard deduction amount of $5,000 applies to each individual taxpayer who is 65 years or older, regardless of filing status. Thus, married spouses who are both 65 years old or older and who file a joint income tax return may claim an additional standard deduction amount of $10,000 (adjusted for inflation).
As background, the basic standard deduction amount may be increased for taxpayers who attain the age of 65 before the end of the tax year (generally referred to as the additional standard deduction). Under current law, for 2025, the additional standard deduction amount is (1) $1,600 for individuals who are 65 years old or older, or (2) $2,000 if the individual is also unmarried and not a surviving spouse.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1130 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1130
To amend the Internal Revenue Code of 1986 to increase the additional
standard deduction for seniors.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 7, 2025
Ms. Malliotakis (for herself, Mr. Panetta, and Mr. Carey) introduced
the following bill; which was referred to the Committee on Ways and
Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase the additional
standard deduction for seniors.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bonus Tax Relief for America's
Seniors Act''.
SEC. 2. INCREASE IN ADDITIONAL STANDARD DEDUCTION FOR SENIORS.
(a) In General.--Section 63(f)(1) of the Internal Revenue Code of
1986 is amended by striking ``$600'' and inserting ``$5,000''.
(b) Inflation Adjustment.--Section 63(f) of such Code is amended by
adding at the end the following new paragraph:
``(5) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after December 31, 2026, the $5,000 amount in
paragraph (1) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins
by substituting `calendar year 2025' for
`calendar year 2016' in subparagraph (A)(ii)
thereof.
``(B) Rounding.--If any increase determined under
subparagraph (A) is not a multiple of $50, such
increase shall be rounded to the next lowest multiple
of $50.
``(C) Cross reference.--For inflation adjustment of
additional amounts for blind, see subsection (c)(4).''.
(c) Conforming Amendments.--
(1) Section 63(c)(4) of such Code is amended--
(A) by striking ``or subsection (f)'' in the matter
preceding subparagraph (A) and inserting ``, or
paragraph (2) or (3) of subsection (f),'' and,
(B) by striking ``or subsection (f)'' in
subparagraph (B)(i) and inserting ``, or paragraph (2)
or (3) of subsection (f)''.
(2) Section 63(f)(3) of such Code is amended--
(A) by striking ``paragraphs (1) and (2)'' and
inserting ``paragraph (2)'', and
(B) by inserting ``blind'' after ``unmarried'' in
the heading thereof.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
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