Working Families Tax Cuts Deliver Relief for Seniors

Working Families Tax Cuts Deliver Relief for Seniors

Washington, D.C.-Along with preventing the largest tax hike in American history, the Working Families Tax Cuts fulfilled President Trump's promise to provide tax relief to low- and middle-income senior citizens. Now, people aged 65 or older can claim a new $6,000 deduction in addition to the standard deduction and the existing seniors deduction, and married filers can each claim the deduction if both qualify. Because of these deductions, the Council of Economic Advisors estimates that 88 percent of seniors will no longer pay taxes on Social Security benefits, helping them to stretch fixed incomes much further.

"Americans deserve financial security in their retirement years, and many Idahoans are working much later in life than they expected," said U.S. Senate Finance Chairman Mike Crapo (R-Idaho). "The expanded senior deduction and other forms of new tax relief are putting more money in their pockets to cover basic necessities and allowing them to invest in their children and grandchildren."

Key wins:

• Provides a $6,000 bonus exemption to low- and middle-income seniors
• • More than 34 million seniors benefitted from the exemption this filing season, with an average household deduction of over $7,500
  • Seniors are receiving the largest dollar increase in their refunds, according to recent testimony from IRS CEO Frank Bisignano
• Permanently increases the standard deduction, which simplifies tax filing for 90 percent of taxpayers
• Permanently lowers tax rates to help all Americans keep more of their hard-earned money

What they are saying:

"After AMAC sent out a call for real-life stories detailing the impact of the [WFTC], the response was immediate and overwhelming… The most frequently cited benefit was the $6,000 additional senior deduction … which many members credited with producing something they had not seen in years: a refund. 'First refund in years' appeared again and again, often paired with stories of relief on fixed incomes-paying off medical bills, replacing aging vehicles, helping children and grandchildren, or simply remaining self-sufficient." - Association of Mature American Citizens Newsline Editor-in-Chief Shane Harris

"This year's tax season is bringing meaningful financial relief to older Americans… this kind of relief can make a critical difference for folks trying to make ends meet." - AARP Executive Vice President Nancy LeaMond

Click HERE to learn more about how the Working Families Tax Cuts supports seniors.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.