impact of tax refund increase for seniors

[timulltim]

Supposedly the tax relief for older adults in the form of a $6,000 “bonus” deduction that could

offset federal taxes on Social Security benefits for some.

Please explain the detail and just where the bonus $$ is configured on the

1040 standard deduction.

What is the expected net impact on the refund

Married filing jointly over 65

e.g. all factors the same $83,710 agi  line #11

less taxes of 32,300 line #14

taxable income of $ 51,410 line #15

if in 2024 refund was 9,430

does that the increase refund to 21,000?

These tax laws are effective when this year 2025?

[vithalanin]

The bonus deduction of $6000 is an additional deduction to the standard deduction for each taxpayer on the return over the age of 65 with a valid Social Security number. So for married filing jointly where both taxpayers are over 65, the amount will be $12,000 in bonus deduction.

So in your case, married filing jointly with both of you being over 65,

agi line #11 $83,710

the standard deduction for 2025 is $34,700 plus additional bonus deduction of $12,000

So taxable income, line #15 will be $37,010

Tax refund will not go up by the bonus deduction.

[timulltim]

     tyvm                    -