Tax deduction for seniors: new above-the-line income relief.
This bill establishes a new tax deduction for individuals who have attained age 65 before the close of the taxable year. Seniors can deduct up to $25,000 (or $50,000 for joint filers if both individuals are over 65) from their income, regardless of whether they itemize other deductions. This relief is reduced if the taxpayer's adjusted gross income exceeds $100,000 ($200,000 for joint returns). The provisions apply to tax years beginning after December 31, 2023, but no deduction is allowed for tax years beginning after December 31, 2028.
Key points
New Tax Deduction: Individuals aged 65 and older can deduct up to $25,000 from their income.
Joint Filers: Married couples where both individuals have attained age 65 can deduct up to $50,000 (limit is $25,000 if only one meets the age requirement, though income thresholds differ).
Income Limit: The deduction is reduced if the adjusted gross income exceeds $100,000 ($200,000 for joint returns).
Accessibility: The deduction is allowed whether or not the individual itemizes other deductions.
Termination: No deduction shall be allowed for taxable years beginning after December 31, 2028.
Expired
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