Lawmakers weigh a $6,000 bonus deduction and a disputed SALT cap as part of the One Big Beautiful Bill Act.
The Senate is fine‑tuning its version of the One Big Beautiful Bill Act, and millions of retirees are watching closely. The chamber’s draft would boost the temporary senior deduction to $6,000—up from the House’s $4,000—while freezing the state‑and‑local tax (SALT) cap at $10,000. If reconciliation rules are met, the package could clear the Senate with a simple majority this summer.
First, who wins if the larger break survives? Seniors over 65 with incomes up to $75,000 (or couples up to $150,000) could claim the extra deduction for tax years 2025‑2028. That translates to a potential standard deduction of $42,000 for joint filers—larger than many itemizers achieve today.
What the proposed $6,000 senior deduction means for Social Security recipients
Tax specialist Ted Sarenski notes that a higher standard deduction would “out‑punch” rising living costs for four years. Still, he warns of a 2028 cliff when the perk vanishes—picture an $8,000 to $12,000 drop overnight. Feeling déjà vu from past benefit rollbacks? You’re not alone.
The Senate plan keeps the eligibility ceiling modest to target middle‑income retirees. Qualifying seniors must file returns for 2025 through 2028; miss those years and the windfall evaporates. Mark April 15 each spring, because late filings could forfeit the bonus. Ready to set reminders on your phone? Before diving deeper, compare the House and Senate blueprints side by side:
| Proposal | Senior bonus deduction | SALT cap |
|---|---|---|
| House version | $4,000 (2025‑2028) | $40,000 per household |
| Senate draft | $6,000 (2025‑2028) | $10,000, made permanent |
The contrasting SALT limits highlight the bill’s biggest sticking point.
The salty debate about raising or freezing state and local tax cap
House negotiators—backed by Rep. Mike Lawler—insist on a $40,000 SALT lid, calling the Senate’s $10,000 figure “dead on arrival.” High‑tax states such as New York and California argue that a higher cap offsets sky‑high property bills.
Senate Republicans counter that permanence offers certainty and curbs creative workarounds. Consequently, expect fireworks before a compromise emerges somewhere in the middle.
What seniors can do before the vote arrives
Below are a series of steps that older people should take into account beforehand:
- Track the calendar. The Senate aims for a vote later this summer; swift passage would send the measure back to the House.
- Run the numbers. Estimate whether the bigger standard deduction beats your usual itemized write‑offs.
- Stay vocal. Constituents worried about the SALT cap—or the 2028 sunset—should reach out now, not after the ink dries.
Ultimately, the bill’s promise of a four‑year tax cushion is real, but so is the risk of a hard landing. Will lawmakers widen the deduction, raise the SALT cap, or both? We’ll know soon enough.