The Working Families Tax Cuts are delivering tax relief to low- and middle-income senior citizens, with new provisions allowing people aged 65 or older to claim a $6,000 deduction in addition to the standard deduction and the existing seniors deduction, according to a May 27 announcement. Married filers can each claim the deduction if both qualify. The Council of Economic Advisors estimates that 88 percent of seniors will no longer pay taxes on Social Security benefits due to these changes.
U.S. Senate Finance Chairman Mike Crapo said, “Americans deserve financial security in their retirement years, and many Idahoans are working much later in life than they expected. The expanded senior deduction and other forms of new tax relief are putting more money in their pockets to cover basic necessities and allowing them to invest in their children and grandchildren.”
More than 34 million seniors benefitted from the exemption this filing season, with an average household deduction of over $7,500. Seniors have received the largest dollar increase in their refunds this year, based on recent testimony from IRS CEO Frank Bisignano. The legislation also permanently increases the standard deduction—simplifying tax filing for 90 percent of taxpayers—and lowers tax rates.
Shane Harris, Association of Mature American Citizens Newsline Editor-in-Chief, said: “After AMAC sent out a call for real-life stories detailing the impact of the [WFTC], the response was immediate and overwhelming… The most frequently cited benefit was the $6,000 additional senior deduction … which many members credited with producing something they had not seen in years: a refund. ‘First refund in years’ appeared again and again, often paired with stories of relief on fixed incomes—paying off medical bills, replacing aging vehicles, helping children and grandchildren, or simply remaining self-sufficient.”
AARP Executive Vice President Nancy LeaMond said, “This year’s tax season is bringing meaningful financial relief to older Americans… this kind of relief can make a critical difference for folks trying to make ends meet.”
Crapo serves as chair of the Senate Committee on Finance; he has advocated for Idahoans on issues such as responsible forest management and natural resource protection; he served three terms representing Idaho’s Second Congressional District; he grew up in Idaho Falls; raised five children with his wife Susan; earned degrees from Brigham Young University and Harvard Law School—all according to his official website.
