New tax cuts could be on the way: Here’s how they might affect your wallet, especially if you are over 65

Republicans are working on legislation that would extend tax cuts from President Donald Trump’s first term in office as well as new proposals to lower what Americans owe the IRS. The proposed bill was passed out of the House Ways and Means Committee and House Speaker Mike Johnson wants to send it to the Senate by Memorial Day.

Not included in the legislation is Trump’s campaign promise to eliminate taxes on Social Security benefits for seniors. That proposal was controversial as those taxes feed right back into the program and would’ve accelerated its insolvency. However, the GOP did toss seniors a bone.

GOP proposes $4,000 tax cut for seniors

Stashed inside the Republicans’ proposed bill is a new tax benefit for certain senior citizens 65 and older, an extra deduction of $4,000 per filer. Only individual taxpayers with a modified adjusted gross income of $75,000 or less and married couples who file joint returns with earnings up to $150,000 would be able to take advantage of the tax break.

However, it would be available to those who either itemize or take the standard deduction when filing.

Additionally, it would be available starting the 2025 tax year and continue through the 2028 tax year.

The legislation still has to get through the lower and upper chambers, both of which are controlled by Republicans. So, the bill will likely see several changes as lawmakers in both the House and Senate put their own mark on it.

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