Bonus Tax Relief for America’s Seniors Act
Officially: “Bonus Tax Relief for America’s Seniors Act” Read the full text
What it does
Read it in plain language
1Short title
This section would let the Act be referred to as the 'Bonus Tax Relief for America's Seniors Act.'
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1. Short title This Act may be cited as the Bonus Tax Relief for America’s Seniors Act .
2Increase in additional standard deduction for seniors
This section would raise the additional standard deduction amount for seniors in section 63(f)(1) of the Internal Revenue Code from $600 to $5,000. Starting with taxable years that begin after December 31, 2026, that $5,000 amount would be adjusted upward each year for inflation: the increase would equal the $5,000 figure multiplied by the cost-of-living adjustment that section 1(f)(3) of the tax code produces for the calendar year the tax year begins in, calculated using 2025 as the base year in place of 2016. If that increase is not a multiple of $50, it would be rounded down to the next lowest multiple of $50. The bill also notes that the additional standard deduction amount for blind individuals continues to be adjusted for inflation separately, under existing section 63(c)(4). This section would update related cross-references in the tax code to match the new arrangement: section 63(c)(4), which currently applies its inflation adjustment to all of section 63(f), would be narrowed in two places so it applies only to paragraphs (2) and (3) of section 63(f), since paragraph (1)'s amount now gets its own inflation adjustment under the new paragraph (5) instead. A related cross-reference in section 63(f)(3), which currently points to both paragraphs (1) and (2), would be narrowed to point only to paragraph (2), and the heading of that paragraph would have the word 'blind' inserted immediately after the word 'unmarried.' These changes would apply to taxable years beginning after December 31, 2025.
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2. Increase in additional standard deduction for seniors (a) In general Section 63(f)(1) of the Internal Revenue Code of 1986 is amended by striking $600 and inserting $5,000 . (b) Inflation adjustment Section 63(f) of such Code is amended by adding at the end the following new paragraph: (5) Inflation adjustment (A) In general In the case of any taxable year beginning after December 31, 2026, the $5,000 amount in paragraph (1) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding If any increase determined under subparagraph (A) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. (C) Cross reference For inflation adjustment of additional amounts for blind, see subsection (c)(4). . (c) Conforming amendments (1) Section 63(c)(4) of such Code is amended— (A) by striking or subsection (f) in the matter preceding subparagraph (A) and inserting , or paragraph (2) or (3) of subsection (f), and, (B) by striking or subsection (f) in subparagraph (B)(i) and inserting , or paragraph (2) or (3) of subsection (f) . (2) Section 63(f)(3) of such Code is amended— (A) by striking paragraphs (1) and (2) and inserting paragraph (2) , and (B) by inserting blind after unmarried in the heading thereof. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
Where it is
In the House.