Trump’s ‘Big Beautiful Bill’ Could Mean A Bigger Tax Refund For Older Americans — But They Have To File To Find Out

by | Apr 6, 2026 | General

Older Americans stand to benefit most from tax changes under President Donald Trump‘s One Big, Beautiful Bill, but they will need to file a return to see how much they could gain.

The Senior Bonus Deduction

The law provides a new senior deduction of up to $6,000 per eligible individual for taxpayers who were at least 65 on or before December 31, 2025. The full deduction is available to individuals with a modified adjusted gross income of $75,000 or less. Married couples where both individuals qualify can claim $12,000, provided their combined modified adjusted gross income does not exceed $150,000.

The deduction phases out gradually above those thresholds and disappears entirely for individuals earning $175,000 or more and couples earning $250,000 or more. The tax break may provide an average $670 increase in after-tax income per eligible senior, according to the Council of Economic Advisers.

When combined with an enhanced standard deduction and a longstanding senior deduction of $2,000 per individual, eligible filers could see a total tax break of $23,750. Married couples may see as much as $46,700. An estimated 88% of seniors will owe no taxes on their Social Security benefits as a result, the CEA estimates.

Free Filing Help Available

Seniors who need assistance can turn to two free IRS programs: the Volunteer Income Tax Assistance program, which helps taxpayers earning $69,000 or less, and Tax Counseling for the Elderly, focused on those ages 60 and over. The AARP Foundation’s Tax-Aide, a free preparation service for adults ages 50 and older, is also available in more than 3,600 communities through April 15, according to the AARP Foundation.

Refunds Rising But Scams Increasing

The IRS reported average refunds of $3,571 as of March 20, up 10.9% from $3,221 a year earlier, according to IRS filing data. Experts warn that AI-enabled scams are rising, with fraudsters impersonating IRS officials through calls, emails and texts. Taxpayers are urged to use an Identity Protection PIN to protect their refunds.

The filing deadline for the 2025 tax year is April 15.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock/ Paul Brady Photography