New Bill Creates $25,000 Tax Deduction for Seniors
The Seniors in the Workforce Tax Relief Act establishes an above-the-line deduction for 2024 through 2028.
New legislation would amend the Internal Revenue Code of 1986 to establish an above-the-line tax deduction for Americans 65 and older.
The bill, the Seniors in the Workforce Tax Relief Act, introduced by Rep. Don Bacon, R-Neb., establishes a deduction for seniors in the amount of $25,000 per year, for tax years 2024 through 2028.
The deduction “would also apply to income from 401(k)s and other taxable annuity payments, not just income from wages,” Bacon’s office said.
The deduction phases out between $100,000 and $125,000, and the phaseout amounts are doubled in the case of a joint return, according to a spokesperson for Bacon.
“The value of the deduction is also doubled in the case of a joint return with respect to which both filers are over age 65,” his office said.
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