Is the Big, Beautiful Trump tax bill good for people in California over 65?
There’s a special tax deduction for seniors in the Republican tax and spending bill that could save lower and middle income people over 65 hundreds and even hundreds of dollars.
Under the legislation the Senate is now considering, a qualifying senior could deduct an additional $4,000.
But some senior citizen advocates say that while the additional help is welcome, other parts of the Republicans’ “Big, Beautiful Bill” have great potential to hurt a lot of seniors.
“The rest of the bill is devastating to health care, food services and a whole lot of other things,” said Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare, a seniors’ advocacy group. The bill would sharply cut Medicaid and food assistance spending.
Conservatives had a different take.
“It’s a win for seniors across the country,” said Jim Martin, Founder and Chairman of the 60 Plus Association, a seniors advocacy group, of the bill.
He cited what he called “much needed tax relief to middle and low-income seniors.”
The centerpiece for seniors, and for that matter, anyone with an income, is the tax relief. Current federal income tax rates established in 2017 would continue beyond this year, instead of expiring.
A tax break for seniors
The additional deduction for seniors would be new, in effect between 2025 and 2028.
Currently, those over 65 can get an additional standard deduction of $2,000 if married or $1,600 if unmarried and not a surviving spouse. The $4,000 extra deduction per filer would be available to individuals with modified adjusted gross incomes of less than $75,000 and couples filing jointly making less than $150,000.
Calculating anyone’s potential savings is complicated. Savings for an individual at the $75,000 AGI level would save about $880. Joint filers could save up to $1,760, according to Garrett Watson, director of policy analysis at Washington’s Tax Foundation.
His estimate assumes the taxpayers are taking the standard deduction and are in the 22% tax bracket. The amount could change depending on other factors affecting their income.
Any person’s tax liability will vary, of course, depending on circumstances. But seniors under the income limits should find they save on their tax bills.
Originally, President Donald Trump wanted to exempt lower and middle class taxpayers from Social Security taxes.
Around 6.3 million Californians receive Social Security benefits. If their income is more than $34,000 or a joint return’s income is more than $44,000 under a federal formula for such calculations, as much as 85% of the Social Security benefits can now be subject to taxation. Those levels remain in place, but the deduction would offset a chunk of that tax liability.
Lawmakers were discouraged from the Trump plan for two reasons: The cost would have been nearly $1 trillion over 10 years, and there was concern that the proposal wouldn’t survive a Senate procedural test.
Cutbacks affecting seniors
There’s widespread support for the deduction, though Democrats and some senior advocacy groups warn other elements of the bill are a problem.
“It’s a Trojan Horse,” said Freese of the higher deduction. “The overall bill is bad for senior citizen programs.”
Sen. Adam Schiff, D-Calif., recalled that earlier this year, the Trump administration wanted to shut down many Social Security field offices. The agency denied it was permanently closing the offices.
It issued a statement in March saying that “from time to time, SSA must temporarily close a local field office for reasons such as weather, damage, or facilities issues, and it reopens when the issues are resolved. The agency has announced the permanent closure of one hearing office, in White Plains, New York.”
To Schiff, the potential pain from not only threatened closings but other cuts was real. “It sounds like what they’re trying to give on one hand they’re taking away with the other,” he said.
He noted that under the bill, current income tax rates would continue, rates he said give bigger breaks to the wealthy.
“Overall unless you’re a very wealthy senior this is a terrible bill for you,” Schiff said.
The House narrowly approved the bill last month. The Senate is now considering the measure, and there are tense negotiations between Republicans over a host of issues, including tax and Medicaid policy.
Currently, Medicaid provides health coverage to 7.2 million low-income seniors. They also receive Medicare.
Medicaid can benefit lower income seniors by helping them pay for out of pocket medical expenses and services not covered by Medicare, including prescriptions, hearing aids and eyeglasses.
The House bill aims to save money on Medicaid by, among other things, imposing work requirements on most recipients. But those requirements would not apply to anyone 65 or over. What experts fear is that the bill would make it more difficult to enroll, and continue to re-enroll, in the program.
“One provision would take Medicaid coverage away from people, mostly seniors and those with disabilities who also have Medicare, due to provisions that make it harder to get and stay enrolled in Medicaid,” said an analysis from the Center on Budget and Policy Priorities, a progressive research group.
Such claims are overblown, bill supporters say.
Rep. Tom McClintock, R-Elk Grove, was asked recently by the Turlock Journal whether a questioner’s 81-year-old mother should worry about Medicaid cuts.
“That is a very sincere fear,” he said.
“I had a young lady come up to me at the airport the other day on behalf of her grandmother, absolutely apoplectic that she’s going to lose her Medicaid benefits, because that’s what she’s heard the Democrats tell her. I said, ‘Is she over 65? Yes, then she’s got nothing to worry about. If she’s under 65 and looking for work, she’s got nothing to worry about.’”
This story was originally published June 9, 2025 at 11:39 AM with the headline "Is the Big, Beautiful Trump tax bill good for people in California over 65?."
.jpg)