Millions of retirees in the United States could see a break
in their tax burden starting in 2026 thanks to a recent tax reform signed by
President Donald Trump. According to guidelines from the Internal Revenue
Service (IRS) and tax policy analysis, some taxpayers over 65 could save up to
$450 in federal taxes as a result of this new legislation.
The law, known as the One Big Beautiful Bill, introduces a
special temporary deduction specifically for senior citizens. The main
objective is to reduce taxable income and, consequently, decrease the amount of
money retirees must pay in taxes, especially regarding the resources they
receive from Social Security and other retirement sources.
In practice, the measure seeks to address one of the main
complaints from this sector: that an increasing portion of their retirement
income ends up being taxed by federal income taxes, even though many live on
tight budgets. By allowing an additional deduction for those over 65, the law
reduces the tax base, resulting in lower payments to the government.
Tax experts point out that the benefit will not be the same
for all retirees, as the final savings will depend on each taxpayer's income
level and individual circumstances. However, for a large segment of seniors,
the reduction could amount to several hundred dollars, with an estimated
maximum of around $450 in 2026.
The White House has presented this provision as a way to
recognize the contributions of older adults to the country and to offer them
relief at a time in their lives when medical and living expenses tend to
increase. Critics of the law, however, have pointed out that it is a temporary
benefit and does not fundamentally resolve the debate on the taxation of Social
Security benefits, although they acknowledge that in the short term it
represents concrete support for many retirees.
The IRS will publish more detailed guidelines in the coming
months to explain exactly how the deduction will be applied and who will be
eligible. Meanwhile, financial advisors recommend that retirees stay informed
about the changes and, if possible, consult with a specialist to understand how
this new rule could impact their tax returns in the coming years.
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