Summary: Trump's new tax break promises older Americans up to $6,000 deduction per year from 2025-28.

President Donald Trump’s new tax break promises older Americans a “senior bonus” deduction of up to $6,000 per year from 2025-28. The Senate and House versions differ, with the Senate offering $6,000 per person and the House proposing $4,000. The break phases out for incomes above $75,000 for singles and $150,000 for joint filers.

Middle-income retirees stand to benefit the most, with a potential savings of around $1,600 for a couple earning $100,000. Lower-income seniors may see smaller savings, while high-income retirees would be phased out. The deduction, along with other tax extensions, could cost about $30 billion annually and impact the Social Security trust fund.

House and Senate negotiators must reconcile the differing figures before a final vote, expected before July 4. The Trump administration argues the deduction will provide historic tax relief for seniors by reducing taxes on Social Security without changing benefit formulas.

Read more at Yahoo Finance: Here’s How You Qualify For The Benefit