Millions of retirees could see their tax bill reduced if one or both proposed federal bills are passed. The Bonus Tax Relief for America’s Seniors Act and Tax Relief Unleashed for Seniors by Trump (TRUST) Act are on the table.
Seniors have been hit hard by the turbulent economy and any relief is welcome. But how will these two bills benefit retirees, and what will it take to pass them?
Bonus Tax Relief for America’s Seniors Act
Although President Donald Trump campaigned on the elimination of taxes on Social Security benefits, the Bonus Tax Relief for America’s Seniors Act (H.R. 1130) is a separate reduction.
Proposed by lawmakers Reps. Nicole Malliotakis (R-N.Y.), Mike Carey (R.-Ohio), and Jimmy Panetta (D-Calif.), it’s bipartisan legislation that would increase the additional standard deduction that Americans 65 and over enjoy.
Standard Deduction Versus Additional Standard Deduction
There is the standard deduction that most Americans are eligible for, and there is an additional standard deduction that only seniors 65 years old and over (or the blind) are eligible for.
According to the Internal Revenue Service, in 2024, the standard deduction was $29,200 for couples filing jointly and $14,600 for single taxpayers. Seniors received this deduction.
However, seniors also received an additional standard deduction layered on top of the standard. This additional standard deduction in 2024, according to a Malliotakis press release, was $1,950 for single filers or heads of households. For married taxpayers, it was $3,100.
Proposed Additional Standard Deduction More Than Double
The Bonus Tax Relief for America’s Seniors Act proposes that additional standard deduction be more than doubled. The new additional deduction would be $5,000 for single filers and $10,000 for married couples. This would amend the IRS code of 1986. The new additional standard deduction amount would be adjusted annually for inflation.
Malliotakis said, “Many of our seniors have been crushed by inflation and are being forced to stretch their retirement savings further than ever before.”
Carey reinforced the need for the legislation by stating, “Our seniors on fixed incomes can’t afford a hefty tax bill.”
Panetta concurred with the need, saying, “By increasing the additional deduction for older Americans, we would help ensure that they can retire with the financial security and dignity they deserve.”
American Association of Retired Persons (AARP) chief advocacy and engagement officer Nancy LeaMond, said, “This is an important step that will provide meaningful tax relief at a time when many seniors are feeling financial strain.” The AARP endorsed the Bonus Tax Relief for America’s Seniors Act on May 5.
The proposed additional standard legislature could help offset federal income taxes on Social Security that some retirees pay.
But this isn’t the only act proposed that would benefit retirees.
Tax Relief Unleashed for Seniors by Trump Act and Social Security
According to the IRS, up to 85 percent of taxpayer’s Social Security benefits may be taxable. This is due to the IRS code of 1986.
Despite wages and inflation increasing, the brackets for Social Security benefits haven’t changed for decades. This has resulted in more people paying taxes on their benefits.
The TRUST (H.R.1129) act amends it.
Currently, Social Security retirement benefits are taxed if you meet a certain threshold. According to the IRS, the base amount for filing status is $25,000 gross income for single filers and $32,000 if married filing jointly. The proposed law would raise those thresholds.
According to H.R. 1129, Section 86 (c) of the Internal Revenue Code of 1986 is proposed to read:
- Striking $25,000 and inserting $50,000
- Striking $32,000 and inserting $64,000
- Striking $34,000 and inserting $59,000
- Striking $44,000 and inserting $76,000
The amounts depend on single filing, married couples filing, head of household, and qualified widow(er) status.
This might be the better way to go around Trump’s promise of eliminating taxes on Social Security.
MarketWatch reported that eliminating taxes on Social Security benefits would hasten the demise of the Social Security trust fund. The trust fund is expected to be depleted in 2035. At that point, beneficiaries will receive 83 percent of their promised benefits.
Where Does Bonus Tax Relief for America’s Seniors Act Stand?
Considering that more than 10,000 bills are considered by each Congress and only 7 percent become law, the Bonus Tax Relief for America’s Seniors Act may have a tough road ahead.
The bill is in the first stage of the legislative process and was introduced in February 2025. One or more committees will consider it first before going to the House or Senate as a whole. According to GovTrack, it has a 10 percent chance of making it past the committee process.
However, according to the House Ways and Means Committee, Trump’s “Big Beautiful Bill” has a similar tax deduction that would put up to $450 in the pockets of seniors.
The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
