Q&A: Older Iowans – Don’t Miss Out on New Tax Savings

Q&A: Older Iowans - Don't Miss Out on New Tax Savings

With U.S. Sen. Chuck Grassley

Q: What do Iowa seniors need to know about the new enhanced tax deduction?

A: The Republican-led Congress last year passed historic tax relief for Americans that included a new enhanced tax deduction for seniors effective for tax years 2025 through 2028. These savings are geared to help older taxpayers living on fixed incomes make ends meet. Iowans need to be aware of this new provision when they file their tax returns so they don't miss out on the savings. For tax year 2025, taxpayers must have been born before Jan. 2, 1961 to qualify. The enhanced tax deduction allows eligible seniors to deduct up to $6,000 (individuals) or up to $12,000 (filing jointly) on their tax returns. The deduction gradually phases out for individual taxpayers with income above $75,000/$150,000 for joint filers. This enhanced deduction that President Trump signed into law on July 4^th as part of the landmark Working Families Tax Cuts Act adds up to sizable tax savings for seniors. Keep in mind, the enhanced deduction increases the amount of income seniors can earn before owing federal income tax in addition to any other deductions they may qualify for, including the standard deduction and additional standard deduction for the elderly or blind. For the 2025 tax year, the standard deduction and additional deduction for the elderly amount to $34,700 for those married filing jointly or qualifying surviving spouse; and, $17,750 for single. Combined with the enhanced tax deduction, qualifying seniors' income up to $23,750 for individuals and $46,700 for married seniors filing jointly is shielded from federal income tax. I hear regularly from Iowa seniors who stretch every dollar to pay the bills. I'm glad the Working Families Tax Cuts law will allow them to keep more of their own money in their pockets.

To claim the deduction, individuals must have a valid Social Security Number that is issued by the Social Security Administration before their 2025 tax return is due. IMPORTANT: On IRS Form 1040 or 1040-SR, check the box indicating you are 65 or older. The IRS will automatically add the enhanced deduction amount for eligible filers.

Q: What free tax help is available for lower income seniors needing assistance?

A: For more than five decades, the IRS has sponsored free basic tax preparation services in local communities across the country through the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) programs. These programs offer free tax preparation services by IRS-certified community volunteers across the state. The VITA program is available for taxpayers with an adjusted gross household income of $69,000 or less in 2025. The TCE program offers free tax help to individuals age 60 or older, with expertise available for questions about pensions and retirement-related issues. Appointments typically are required and can fill quickly. Be sure to bring along wage and earnings statements from employers (W-2s) and interest and dividend statements (Forms 1099), as well as a photo ID; last year's tax return; and, Social Security card. To file taxes electronically on a married-filing jointly return, both spouses must be present to sign the forms.

Find a VITA or TCE site providing free tax help nearest you at https://freetaxassistance.for.irs.gov/s/sitelocator, or call (800) 906-9887.

See additional information below for the following locations.

• The Iowa Center for Economic Success operates 17 VITA sites. To find a location and schedule an appointment, go to https://theiowacenter.org/vita.

• Iowa State University students offer free tax preparation services for Central Iowans. VITA clinics are available Monday-Thursday evenings on campus in the Gerdin Business Building and Friday afternoons in Boone at the Des Moines Area Community College. Individuals may also schedule appointments at the public libraries in Story City, Ames or Nevada.

• Iowa State Extension and Outreach operates VITA clinics in 26 county offices. Find those at https://www.extension.iastate.edu/humansciences/vita

• Johnson County offers VITA services at the Iowa City Public Library through April 8, 2026. Schedule an appointment at https://www.johnsoncountyiowa.gov/vita

• University of Northern Iowa (UNI) accounting students participate in the VITA program and provide free tax preparation to eligible individuals in the Cedar Valley community. The clinic operates on Wednesday evenings on campus at the Curris Business Building through the first week of April. UNI VITA operates on a first-come, first-served, walk-in basis. For more information, call (319) 273-2394.

• Iowans in Dubuque, Delaware and Jackson Counties may schedule a VITA appointment through the Hawkeye Area Community Action Program (HACAP) at https://www.hacap.org/vita.

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