A new $6,000 tax deduction for seniors has been introduced to help older Americans with rising living costs and property taxes. While it could enable some seniors to stay in their homes, many lower-income seniors may not benefit due to eligibility criteria. The deduction allows seniors to reduce their taxable income directly, adding on top of existing deductions. However, it phases out for higher earners, and the age requirement of 65 means younger retirees cannot qualify, limiting its overall impact on the target demographic.
The new senior deduction allows eligible seniors to deduct an additional $6,000 from their taxable income, or $12,000 for married couples where both spouses are over 65.
At stake is more than a line on a tax form. For millions of aging Americans, this deduction could mean the difference between aging in place or being priced out of the home they thought they'd retire in.
For individuals earning $75,000 or more and couples earning over $150,000 a year, the benefit will begin to phase out.
The 65 and older age threshold is a hard requirement, meaning retirees under that age won't qualify, even if they're already collecting Social Security.
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