Right now, taxpayers age 65 and older get a small bonus added to their standard deduction at tax time — currently $600. This bill would raise that bonus to $5,000 and tie it to inflation going forward, meaningfully lowering federal taxes for older Americans on fixed incomes. The new amount would apply starting with the 2026 tax year, and would adjust each year for the cost of living beginning in 2027. The bill has bipartisan support.
Average Household Impact
- Additional standard deduction for seniors — Raised from $600 to $5,000 with annual inflation indexing starting tax year 2026
Congressional Summary
Bonus Tax Relief for America’s Seniors ActThis bill increases to $5,000 (adjusted for inflation) the amount of the additional standard deduction allowed for individual taxpayers who are 65 years old or older. Under the bill, the additional standard deduction amount of $5,000 applies to each individual taxpayer who is 65 years or older, regardless of filing status. Thus, married spouses who are both 65 years old or older and who file a joint income tax return may claim an additional standard deduction amount of $10,000 (adjusted for inflation).As background, the basic standard deduction amount may be increased for taxpayers who attain the age of 65 before the end of the tax year (generally referred to as the additional standard deduction). Under current law, for 2025, the additional standard deduction amount is (1) $1,600 for individuals who are 65 years old or older, or (2) $2,000 if the individual is also unmarried and not a surviving spouse.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-07
- Date Added
- 2026-05-02
- Source
- Congress.gov →
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