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Tax Relief for Working Seniors: New Income Deduction

This act introduces a new tax deduction for individuals aged 65 and older who are still working. This allows them to reduce their taxable income, potentially leading to lower taxes for eligible seniors. These changes apply to tax years beginning after December 31, 2024, and are set to expire at the end of 2029.
Key points
Individuals aged 65 and over can deduct up to $25,000 from their adjusted gross income.
For joint filers or surviving spouses, the deduction limit is up to $50,000 if both individuals meet the age requirement.
This deduction is available whether or not the taxpayer itemizes other deductions, making it easier to claim.
The deduction amount is reduced if adjusted gross income exceeds $100,000 for individuals or $200,000 for joint filers.
These provisions are temporary and will not apply to tax years beginning after December 31, 2029.
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Status: Introduced
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Additional Information
Print number: 119_HR_559
Sponsor: Rep. Bacon, Don [R-NE-2]
Process start date: 2025-01-20