WASHINGTON, D.C. –
Congresswoman Nicole Malliotakis (NY-11), a member of the House Committee on Ways and Means, announced on February 10 that she has introduced two pieces of legislation to reduce the tax burden on America’s seniors.
First, H.R. 1130, the Bonus Tax Relief for America’s Seniors Act, would amend the Internal Revenue Code of 1986 to increase the additional bonus deduction for seniors age 65 and over from $1,950 to $5,000 for single filers, and from $3,100 to $10,000 for married couples. On average, this bipartisan legislation would reduce federal taxes by $2,100 for married couples filing jointly earning $85,000 per year.
“Our seniors have worked hard and paid taxes their whole lives and they should be able to keep more of their Social Security and retirement income without Uncle Sam trying to reach into their pockets again,” Congresswoman Malliotakis said. “Many of our seniors have been crushed by inflation, and are being forced to stretch their retirement savings further than ever before. The bills I’m introducing today would reduce the tax burden on our seniors, keep more money in their pockets and allow them to retire with greater financial security”.
“Our seniors on fixed incomes can’t afford a hefty tax bill”, said Rep. Mike Carey. “By increasing the standard deduction bonus and eliminating the marriage penalty, we can give their budgets some much-needed breathing room. I am proud to work with Reps. Malliotakis and Panetta on this common-sense legislation”.
“Our seniors have spent their lives working, saving, and contributing to our economy, yet too many are now struggling to make ends meet”, said Rep. Jimmy Panetta.”By increasing the additional deduction for older Americans, we would help ensure that they can retire with the financial security and dignity they deserve. Through this bipartisan legislation, we can take a meaningful step toward easing that burden by allowing seniors to keep more of their hard-earned money.”
Second, H.R. 1129, the Tax Relief Unleashed for Seniors by Trump (TRUST) Act, would increase the amount of income that is tax exempt and index the threshold to inflation, allowing seniors to keep more of their benefits. Malliotakis’ legislation would double current exempt income from $25,000 to $50,000 for single filers and from $32,000 to $64,000 for married couples age 65 and older.
The income thresholds for taxation of benefits have remained unchanged since first established by Congress in 1984. At the time, less than 10 percent of beneficiaries paid federal income tax on their benefits, but because wages have increased, the proportion of beneficiaries who must pay federal income tax on benefits has risen over time.
BILL TEXT FOR H.R. 1130 CAN BE FOUND HERE
BILL TEXT FOR H.R. 1129 CAN BE FOUND HERE
