Wednesday’s deadline for filing federal taxes brings a reminder of the special treatment that some groups of taxpayers were given this year.
Among the bigger beneficiaries of the tax changes contained in the One Big Beautiful Bill Act are those ages 65 and over. On their 2025 taxes and for the next three years, they are receiving an extra $6,000 deduction, the estimated value of which averages about $700 less in taxes.
The benefit, though, is mistargeted. It provides modest immediate relief while a much larger problem for seniors, the pending insolvency of Social Security and Medicare, is still ignored by Congress and President Donald Trump.
Based on current projections, Social Security will start running short of funds in 2033, forcing a cut in benefits of 20% to 25%, if something isn’t done. Medicare is on pace to be insolvent a couple of years sooner than that.
So, if you’re a senior, you’d better invest that $700 in tax savings rather than spend it. Looks like you may need it.
