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Older Americans stand to benefit from tax changes in President Donald Trump’s “big beautiful bill,” which went into effect for 2025.
“What is the one group of people who are going to be benefiting most from tax changes in the past year? It’s almost certainly going to be seniors and retirees,” Alex Durante, senior economist at the Tax Foundation, recently told CNBC.
But they will have to file their tax returns to see if they qualify and how much they could gain.
Where to get free tax help
For seniors who need assistance, there are several free tax services that can help them prepare returns in time for the April 15 deadline.
Older taxpayers may turn to the IRS’ free programs: Volunteer Income Tax Assistance, or VITA, which provides help to low- to moderate-income taxpayers, and Tax Counseling for the Elderly, or TCE, which helps people, especially those ages 60 and over, prepare their tax returns.
There’s also the AARP Foundation’s Tax-Aide, which will be open through Tax Day to provide free tax preparation services, with a focus on filers ages 50 and older.
“We have thousands of volunteers annually that are providing free tax assistance and tax prep services to low- to moderate-income older adults,” said Mioshi Moses, vice president of volunteer programs at the AARP Foundation.
Tax-Aide is part of the AARP Foundation, the charitable arm of AARP that focuses on reducing senior poverty. By providing free tax preparation services, the program helps taxpayers get their hard-earned refunds and credits, Moses said.
Tax changes older Americans need to watch
As older Americans prepare to submit their tax filings this year, some big changes could affect their bottom line.
The “big beautiful” tax law provides a new senior “bonus” or deduction of up to $6,000 per eligible individual. To qualify this season, taxpayers must have been at least 65 on or before Dec. 31, 2025. Because the senior deduction remains in effect through tax year 2028, older individuals may be able to take advantage of the temporary tax break in future years.
The full $6,000 deduction is available to individuals with modified adjusted gross income of $75,000 or less. Married couples in which both individuals are eligible can receive $12,000, provided their modified adjusted gross income is $150,000 or less.
The deduction is gradually reduced for incomes above those thresholds, and fully phases out for individuals with $175,000 or more in modified adjusted gross income and couples with $250,000 or more.
The tax break may provide an average $670 increase in after-tax income per eligible senior, according to the Council of Economic Advisers, an agency within the president’s office.
The new senior deduction comes on top of other tax breaks, including an enhanced standard deduction created with the new tax legislation. Older filers may also be eligible for the longstanding senior deduction of $2,000 per individual or $3,200 per married couple.
Individual taxpayers eligible for all three deductions could have a total tax break of $23,750, while married couples may see a total of $46,700, according to the CEA.
As a result of those changes, an estimated 88% of seniors will not owe taxes on their Social Security benefits, since their total deductions will exceed their taxable benefits, CEA estimates.
But another 2025 law, the Social Security Fairness Act, provided certain public pensioners with higher monthly Social Security payments and retroactive lump sum payments. Consequently, those affected by the law may have increased taxable income when they file their taxes this year.
What to know before you go
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Older Americans who need help navigating the new tax breaks or assistance with routine filing may turn to the free services provided by the IRS or AARP.
The IRS’ Volunteer Income Tax Assistance, or VITA, program provides free tax help, particularly to taxpayers who earn $69,000 or less, individuals with disabilities and filers who have limited English speaking proficiency.
In addition, the IRS’ Tax Counseling for the Elderly, or TCE, program provides free help to individuals, with a focus on those ages 60 and over, particularly with retirement-related issues and pensions, according to the agency.
Most TCE sites are operated by the AARP Foundation’s Tax-Aide program, according to the IRS.
While AARP’s Tax-Aide focuses on low- to moderate-income older adults, anyone can use its services, according to Moses, of the AARP Foundation.
The AARP’s Tax-Aide offers a variety of services, including in-person or drop-off service for tax return preparation; electronic return preparation where no site visit is required; in-person or online coaching to help prepare tax forms with a volunteer’s help; and software to independently prepare tax returns.
Taxpayers can consult online tools to find nearby VITA or TCE locations or AARP Tax-Aide sites.
Tax-Aide is in more than 3,600 communities across the country, Moses said.
The IRS provides a list of what to bring to a VITA or TCE site. The AARP has a list of essential documents and more information on what taxpayers can expect.
