Bill > HR1130

This bill aims to increase the additional standard tax deduction for seniors by amending the Internal Revenue Code of 1986. Specifically, the bill raises the additional standard deduction for seniors from $600 to $5,000, effective for taxable years beginning after December 31, 2025. The bill also includes a mechanism for annual inflation adjustments to this deduction amount, which will be calculated based on the cost-of-living adjustment and rounded to the nearest $50. To ensure technical accuracy, the bill makes conforming amendments to related sections of the tax code, particularly those dealing with standard deductions for unmarried and blind taxpayers. The proposed changes are designed to provide more substantial tax relief for older Americans by significantly increasing the amount they can deduct from their taxable income before calculating their tax liability. By indexing the deduction to inflation, the bill also aims to preserve the real value of this tax benefit over time, protecting seniors from potential erosion of the deduction's value due to rising living costs.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1130/all-info