AARP is backing several tax provisions in President Trump’s One Big Beautiful Bill Act that could provide significant financial relief to seniors facing rising costs on fixed incomes.
Bigger Tax Breaks for Seniors The most impactful change would increase the additional standard deduction for taxpayers 65 and older by $4,000. This boost could offset some or all federal income taxes on Social Security benefits, helping seniors keep more of their hard-earned benefits. Currently, individuals earning over $25,000 annually and couples earning over $32,000 must pay federal taxes on their Social Security—thresholds unchanged for over 40 years.
Support for Family Caregivers The bill would expand tax credits for employers offering paid family and medical leave, encouraging more businesses to provide this benefit. This particularly helps the 48 million family caregivers nationwide, most of whom are over 50. More than 60% of these caregivers juggle full-time jobs while providing part-time equivalent care hours. Currently, only 40% of large company employees and 20% of small business employees have access to paid family leave.
Affordable Housing Expansion AARP also supports expanding the Low-Income Housing Tax Credit, which would create or preserve over 527,000 affordable homes in the next decade. With 44% of adults 50-plus considering relocation due to housing costs, and 71% citing rent or mortgage expenses as concerns, this represents the largest affordable housing investment in decades.
While AARP opposes other aspects of the bill including Medicaid cuts and prescription drug pricing policies, these tax provisions address critical needs. As AARP’s Nancy LeaMond noted, “Millions of older Americans have worked hard, played by the rules, and now find themselves barely getting by.” These changes would provide meaningful relief for seniors struggling with today’s economic pressures.
Jersey Senior Weekly will be providing full coverage of the One Big Beautiful Bill Act and its impact on seniors in New Jersey.