Two bills recently introduced in Congress would sharply drop federal income taxes for many older Americans.
If they become law, millions of retirees would benefit at a time when many are struggling to stay on top of rising costs.
Here is what is being proposed — and what happens next.
The Bonus Tax Relief for America’s Seniors Act
Who would benefit from this legislation: Anyone who is eligible for the standard deduction and is 65 or older or blind.
What this legislation does: People who are 65 or older, or blind, get a boost to their standard deduction. As of the 2025 tax year, this additional amount is $2,000 per single person and $3,200 per married couple filing a joint tax return.
However, the Bonus Tax Relief for America’s Seniors Act (HR 1130) would increase that additional amount to $5,000 per single person and $10,000 per couple filing jointly. This change would take effect in the 2026 tax year, which is the one for which returns will be due in early 2027.
The additional standard deduction amount would also continue to be indexed to inflation. That means it will increase over time as inflation rises.
AARP recently endorsed the Bonus Tax Relief for America’s Seniors Act. Nancy LeaMond, AARP’s executive vice president and chief advocacy and engagement officer, wrote to the bill’s sponsors:
“By allowing more older taxpayers to keep more of their income, this legislation would improve retirement security and support independence and dignity in aging.”
The Tax Relief Unleashed for Seniors by Trump Act
Who would benefit from this legislation: People who receive Social Security benefits and have a combined income that exceeds $25,000 (if single) or $32,000 (if married filing jointly).
What this legislation does: The Tax Relief Unleashed for Seniors by Trump (TRUST) Act (HR 1129) would double the thresholds that determine whether Social Security benefits are taxable.
Currently, single people owe taxes on a portion of their benefits if what the government calls their “combined income” exceeds $25,000. Married couples who file a joint tax return owe if their combined income exceeds $32,000.
If the TRUST Act became law, those thresholds would double, to $50,000 for singles and $64,000 for couples filing jointly. That would effectively exempt all low-income and some middle-class seniors from taxes on their benefits.
The new thresholds would also be indexed to inflation. That’s a big change, as these thresholds have not risen since 1984, when Social Security benefits first became taxable. As a result, the share of retirees who owe taxes on their benefits has increased over time, from around 10% to around 40%.
What happens next
Both bills were sent to committee immediately after Rep. Nicole Malliotakis (R-New York) introduced them in the House of Representatives, but they haven’t seen any activity since. Typically, such inaction bodes poorly for the chances of a bill moving forward.
However, with Republicans in control of both chambers of Congress and the White House, it’s possible that the text of these bills could be incorporated into the big bill that President Donald Trump has been pushing Congress to pass.
Meanwhile, you can contact your House representatives if you want to tell them how you feel about the two bills — whether you are for or against them.
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