Congress Considers New Tax Breaks for Seniors

New tax relief proposals in 2025 are targeting older Americans, with the goal of easing financial pressure on those living on fixed incomes.

The most notable effort is a proposed $4,000 additional standard deduction for taxpayers aged 65 and older, included in H.R. 1.

Additional standalone bills like the TRUST Act aim to eliminate federal taxes on Social Security benefits and expand property tax exemptions for seniors.

Sponsors argue that these changes would help retirees keep more of their limited income amid rising healthcare and housing costs.

Critics, however, warn that such targeted relief could complicate the tax code and reduce federal revenue.

Support from bipartisan lawmakers suggests growing momentum, especially as the senior population continues to expand.

If enacted, these measures would represent the most significant senior-focused tax reform in over a decade.

A vote is expected later this year, and AARP has already voiced strong support.