Editor’s note: A previous version of this article incorrectly described the new temporary tax deduction for people 65 and older.
The “One Big, Beautiful Bill’ signed into law by President Trump on July 4 will be a mixed bag for seniors, according to AARP.
“While we support several provisions in the (bill) that would provide meaningful relief, we oppose others that would put health coverage, food assistance, and financial security further out of reach for those already struggling,” Nancy LeaMond, AARP’s executive vice president, wrote in a letter to U.S. senators before the bill’s passage.”
Several provisions in the bill that specifically benefit some seniors were endorsed by AARP. These include:
• A temporary tax deduction of $6,000 for people 65 and older. This new deduction is in addition to the existing standard deduction and the standard senior deduction already available to eligible taxpayers ($2,000 for single taxpayers and $1,600 per spouse for couples filing jointly). The full amount of the new deduction is available to individuals with a modified gross adjusted income of up to $75,000 (up to $150,000 for couples filing jointly) and is phased out as a recipient’s income rises. The bonus deduction will expire in 2029 and does not benefit the 64 percent of Social Security recipients who now pay no income taxes on benefits.
• An expansion in the Section 45S tax credit for companies that offer paid family or medical leave to caregivers.
• Easing access for builders and investors to qualify for the Low-Income Housing Tax Credit, which could lead to more affordable housing for seniors on fixed incomes.
AARP opposed other elements of the bill, including:
• Changes in how Affordable Care Act plans are administered that will reduce the number of people covered and increase out-of-pocket premiums.
• Work requirements for Medicaid that will reduce the number of people covered by it.
• Shifting a portion of the cost of the Supplemental Nutrition Assistance Program (SNAP) onto states that may not be able to afford it. The bill also adds a work requirement for most people up to 64 years old.
• Delaying the implementation of new nursing home standards that AARP says “will perpetuate unsafe conditions in many facilities across the country.”
