Congress offers working seniors a $25,000 tax break—but only until 2030
H.R. 559 — Seniors in the Workforce Tax Relief Act · Filed by Don Bacon (R-NE) · Introduced Jan 20, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill creates a new federal income tax deduction for people age 65 and older who are still working. A single filer over 65 can deduct up to $25,000 from their taxable income (phasing out for those earning over $100,000); married couples where both are over 65 can deduct up to $50,000 (phasing out above $200,000). The deduction expires after 2029. It is an above-the-line deduction, meaning seniors can claim it without itemizing.
Why we flagged it
The bill's sole operative mechanism is a targeted income tax deduction for working seniors age 65+. It is straightforward tax relief with no hidden riders or complex cross-references.
What the text implies
- The deduction is temporary (expires 12/31/2029), creating uncertainty for seniors planning long-term retirement work and potentially requiring legislative renewal to maintain the benefit.
- Phase-out thresholds ($100k single / $200k joint) may incentivize some seniors to structure income differently or delay claiming certain income sources to preserve the full deduction.
The full analysis lists 3 implications of this text.
Who stands to gain
working individuals age 65 and older