💵 𝗦𝗘𝗡𝗔𝗧𝗘 𝗪𝗔𝗡𝗧𝗦 $𝟲,𝟬𝟬𝟬 𝗧𝗔𝗫 𝗕𝗥𝗘𝗔𝗞 𝗙𝗢𝗥 𝗦𝗘𝗡𝗜𝗢𝗥𝗦.
✅ What’s Happening?
The Senate has proposed a $6,000 tax deduction for seniors (65+) under its version of the “One Big Beautiful Bill” — a boost from the $4,000 deduction in the version already passed by the House on May 22.
✅ Who Qualifies?
To get the full $6,000 under the Senate bill:
You must have a valid Social Security Number
Income must be below $75,000 (single) or $150,000 (couple)
If you earn more, the deduction phases out quickly at a 6% rate (faster than the House's 4% phase-out)
✅ Why Not Just Cut Social Security Taxes?
Trump’s campaign promised to end taxes on Social Security. But due to reconciliation rules, lawmakers couldn’t change Social Security directly — so they offered this temporary tax break from 2025 to 2028 instead.
🔍 Important Differences:
Senate Bill: Bigger deduction ($6,000) but phases out faster
House Bill: Lower deduction ($4,000) but phases out more slowly and is available whether you itemize or not
📉 Why It Matters:
Right now, up to 85% of Social Security benefits are taxed if your income is above certain thresholds. That doesn’t change — this deduction simply helps lower- to mid-income seniors pay less tax in general, without touching the Social Security formula.
🧾 Next Steps:
The two chambers will negotiate a final version. Since both included a senior deduction, it’s almost guaranteed to make the final bill. If approved, it heads to Trump’s desk for signature.
🎯 Bottom Line:
This is a temporary win for seniors, especially middle-income earners. The Senate’s $6,000 break looks generous — if your income qualifies before the phase-out bites into it.
