Posted on Monday, July 14, 2025
|
by The Association of Mature American Citizens
|
1 Comments
|
Americans are set to see meaningful tax relief starting in 2025, thanks to a sweeping new law the “One Big Beautiful Bill.” This legislation delivers real savings for retirees and working seniors alike and putting more money back in your pocket.
Here’s what AMAC members need to know about what’s in the law, how to claim these deductions, and who qualifies.
- Higher Standard Deduction
One of the most significant changes in 2025 is the higher standard deduction, which applies to all taxpayers who don’t itemize.
- For single filers, the standard deduction increases to $15,750.
- For married couples filing jointly, it rises to $31,500.
You don’t need to do anything special to claim it — simply choose the standard deduction when you file your federal return, and the new amount will automatically apply.
2. Extra Deductions for Seniors
If you’re 65 or older by the end of 2025, you’ll also qualify for an additional senior deduction — on top of the standard one.
- Single filers 65+ get an extra $2,000.
- Married couples where both spouses are aged 65+ get $1,600 each, or $3,200 total.
Again, this is automatic. Just make sure you (or your tax preparer) indicate your age on your return.
3. Special $6,000 Deduction for Seniors with Modest Incomes
In addition to the standard and senior deductions, the new law provides a temporary $6,000 deduction specifically for Americans age 65 and older with modest incomes.
Who qualifies?
- This deduction is designed for seniors whose adjusted gross income (AGI) falls below a certain threshold.
- The exact income limits will be finalized before the 2025 tax season, but it is expected to cover a large share of middle- and lower-income retirees — especially those who rely mostly on Social Security and modest retirement savings.
How to claim it?
- Unlike the standard and senior deductions, this one may require a separate line on your tax form.
- Updated IRS forms and instructions are expected to make this clear, and AMAC will provide guidance as soon as those details are released.
- If you use tax software or a preparer, they’ll help ensure you don’t miss it.
- Other Tax-Friendly Changes
The law also includes additional ways for Americans — including seniors — to save at tax time:
- Tips and overtime pay for most Americans are now tax-deductible at the Federal level.
- Auto loan interest is deductible again.
- The cap on state and local tax (SALT) deductions jumps to $40,000 for households earning under $500,000.
These provisions are especially helpful for older adults who still work part-time, support their families, or live in states with high taxes.
A Victory for Seniors — Thanks to Bold Leadership
At AMAC, we believe good policy happens when leaders listen to the people they serve — and this new law is proof of that. We applaud President Trump and congressional Republicans for pushing the One Big Beautiful Bill through and making seniors a top priority.
We also applaud the tens of thousands of AMAC members who made their voices heard in support of this critical legislation – often on short notice. The One Big Beautiful Bill is more proof that when AMAC members speak, Congress listens.
By increasing deductions, simplifying the process, and ensuring older Americans keep more of what they’ve earned, this law represents a rare and welcome victory for retirees and working seniors alike.
What You Should Do Now
✔️ Know your income: Your adjusted gross income (AGI) will determine if you qualify for the $6,000 senior deduction.
✔️ Plan ahead: If you already claim the standard deduction, the new higher amounts and senior bonuses will happen automatically.
✔️ Get help if needed: Updated forms and guidance will be available before the 2025 filing season — AMAC will keep you informed every step of the way.
✔️Know the truth: Don’t buy into media lies about the OBBB. For a breakdown of the myths vs. reality, see HERE.
At AMAC, we remain committed to fighting for older Americans — and ensuring you have the information and tools you need to thrive. Stay tuned for updates as more details about these tax changes become available.
For now, you can take comfort knowing that relief is on the way — and that your voice, and your vote, continue to make a difference.
Read the full article here