US seniors can claim up to $31,625 in IRS tax deductions: Check age eligibility, income range, other details

What are the changes? How much deductions do senior citizens get?

• As per tax code changes implemented under Donald Trump's OBBB Act, those aged 65 and older are eligible for a new $6,000 deduction, over the $2,000 standard deduction already in place. This takes the base deduction for income up to $75,000 to $8,000, as per the report.
• Further, the US allows couple to file together. As such, eligible senior couples making up to $150,000 jointly can claim base deduction of $12,000 up to $15,200 (including the standard deduction of $3,200).
• For individuals making more than $75,000, up to $175,000, their deduction will decrease by $60 for every $1,000 in additional income past that threshold, it added. 
• For senior couples the phase-out will be for those making more than $150,000, up to $250,000.
• The standard deduction of $2,000 for senior individuals and $3,200 for senior couples was implemented under the 2017 Tax Cuts and Jobs Act (TCJA), the report noted.
• Further, The OBBA Act also increases TCJA applied standard deductions as follows: $15,750 for individual filers, $31,500 for married couples, and $23,625 for heads of households. The last category is applicable across ages. 
• This means, individual seniors can claim maximum deduction including all heads up to $23,750 and if head of household, this can increase to $31,625. 
• For married couples, the maximum deduction increases to $46,700, the report said, citing H&R Block calculations. 

What is the eligibility requirement?

• Must have turned 65 by December 31, 2025.
• Must have a social security number. 
• Deductions will be available through tax year 2028, for filings made in 2029.

How will the deductions reflect in taxes?

• The deductions will be given as refunds after taxes are filed, the report said. 
• Those filing physical papers can expect refund in six to eight weeks.
• Those filing taxes online can expect refund in less than three weeks.
• Those opting for direct deposit can see refunds even faster. No timeline was specifically mentioned, the report added. 

Are these deductions available for taxpayers across all US states?

The deductions under Donald Trump's The OBBB Act are at present not immediate available for taxpayers across all US states, according to an AP report.