"As part of the One Big Beautiful Bill Act (OBBBA), signed into law by the Trump administration on July 4, 2025, a so-called " senior deduction " is being hailed as a historic tax benefit. For the roughly 800,000 seniors in the Beaver State, this relief comes at a critical time as housing and utility costs continue to climb. While Social Security remains federally taxable, this new deduction is designed to effectively offset those taxable portions for the vast majority of recipients."
"The White House describes the new provision as a game changer for older Americans. According to the administration's analysis, 88% of all seniors who receive Social Security income will now owe nothing in federal taxes on those benefits-up from 64% under previous rules. That is an increase of 14.2 million seniors nationwide who will avoid federal taxes on this critical source of retirement income."
"The provision works by adding a new senior-specific tax deduction of $6,000 for individuals and $12,000 for married couples (where both are 65+) on top of the existing standard deduction and age-based additions. For the 2026 tax year, the total deductions available to eligible seniors can reach $23,750 for individuals and $46,700 for couples filing jointly. "This amounts to the largest tax break in history for America's seniors," the White House noted, emphasizing that the policy ensures retirees can "save more of their money""
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, creates a senior-specific federal tax deduction to reduce taxation of Social Security for older Americans. The deduction provides $6,000 for individuals and $12,000 for married couples 65 and older on top of existing standard and age-based deductions. For 2026, total deductions can reach $23,750 for individuals and $46,700 for jointly filing couples. Eligibility phases out above $75,000 MAGI for singles and $150,000 for joint filers. The administration projects 88% of Social Security recipients will owe no federal tax on those benefits.
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