Senate Proposes $6,000 Tax Deduction for Seniors in Revised Bill

The Senate's version of the Big Beautiful bill introduces a $6,000 tax deduction for seniors, effective from 2025 to 2028. Unlike President Trump's campaign promise to eliminate taxes on Social Security benefits, this provision adheres to reconciliation rules by offering a targeted tax break instead. Eligibility hinges on Social Security numbers and income thresholds: individuals earning up to $75,000 and couples up to $150,000 in modified adjusted gross income qualify for the full deduction.

The Senate's phase-out rate of 6% for incomes exceeding the limit contrasts sharply with the House's 4%, accelerating the benefit's disappearance for those NEAR the thresholds. "The faster phase-out means the full $6,000 benefit is lost more quickly," notes Alex Durante of the Tax Foundation. Howard Gleckman of the Urban-Brookings Tax Policy Center adds that the impact varies by income bracket, with middle-income seniors standing to gain most if they meet the criteria.