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This bill would create a new federal income tax deduction for people age 65 and older. The deduction would be taken “above the line,” which means seniors could use it even if they do not itemize their taxes. It is meant to give older taxpayers extra tax relief, especially those who are still working or have income from other sources. The deduction would be available for tax years starting after December 31, 2024, and it would end after 2029 unless Congress extends it.
- Seniors age 65 or older could deduct up to $25,000 from their taxable income each year.
- The full deduction would start to phase out for single filers with income above $100,000. For joint returns or surviving spouses, the phase-out would begin above $200,000.
- If both people on a joint return are age 65 or older, the deduction limit would be $50,000 instead of $25,000.
- The deduction would apply to tax years beginning after December 31, 2024, and would expire after December 31, 2029.
Official Summaries
Seniors in the Workforce Tax Relief Act
This bill establishes a new above-the-line federal tax deduction through 2029 for individuals who attain the age of 65 before the end of the tax year. (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.)
Under the bill, the amount of the tax deduction is $25,000 for individuals (or $50,000 for joint filers and surviving spouses) and begins to phase out for individuals with an adjusted gross income over $100,000 (or $200,000 for joint filers and surviving spouses).
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 559 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 559
To amend the Internal Revenue Code of 1986 to establish an above-the-
line tax deduction for seniors.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 20, 2025
Mr. Bacon 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 establish an above-the-
line tax 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 ``Seniors in the Workforce Tax Relief
Act''.
SEC. 2. DEDUCTION FOR SENIORS.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by redesignating section 224
as section 225 and by inserting after section 223 the following new
section:
``SEC. 224. DEDUCTION FOR SENIORS.
``(a) In General.--In the case of an individual who has attained
age 65 before the close of the taxable year, there shall be allowed as
a deduction for the taxable year an amount equal to--
``(1) $25,000, reduced (but not below zero) by the amount
which bears the same ratio to such deduction as--
``(A) the excess of--
``(i) the taxpayer's adjusted gross income
for such taxable year, over
``(ii) $100,000, bears to
``(B) $25,000.
``(b) Special Rules.--
``(1) Joint return or surviving spouse.--In the case of a
joint return or a surviving spouse (as defined in section 2(a))
paragraph (1) shall be applied by substituting `$200,000' for
`$100,000', and `$50,000' for `$25,000'.
``(2) Both individuals over 65.--In the case of a joint
return or a surviving spouse with respect to which both
individuals attained age 65 (or in the case of a surviving
spouse, would have attained age 65) before the close of the
taxable year, paragraph (1) shall be applied by substituting
`$50,000' for `$25,000'.
``(c) Termination.--No deduction shall be allowed under this
section for taxable years beginning after December 31, 2029.''.
(b) Deduction Allowed Whether or Not Individual Itemizes Other
Deductions.--Subsection (a) of section 62 of such Code is amended by
inserting before the last sentence at the end the following new
paragraph:
``(22) Deduction for seniors.--The deduction allowed by
section 224.''.
(c) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by redesignating the
item relating to section 224 as an item relating to section 225 and by
inserting after the item relating to section 223 the following new
item:
``Sec. 224. Deduction for seniors.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
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