How Seniors Benefit from the Budget Law

Beginning immediately, seniors in California will see the largest tax relief in our nation’s history, thanks to the recently passed budget law I voted for.

I’ve heard from many of you about the growing challenges of living on a fixed income as everyday costs continue to rise. This tax relief is a direct response to those concerns, putting more money back in the pockets of those who need it most.

Below, you’ll find many ways the budget improves the lives of seniors, like no tax on Social Security, a higher standard deduction, and additional deductions that will save you money.

Higher Standard Deduction: One of the most significant changes in 2025 is the higher standard deduction, which applies to all taxpayers who don’t itemize.

• For single filers, the standard deduction increases to $15,750.
• For married couples filing jointly, it rises to $31,500.
• You don’t need to do anything to claim it. Simply choose the standard deduction when you file your federal return, and the new amount will automatically apply.

Special $6,000 Deduction for Seniors: In addition to the standard and senior deductions, the new law provides a temporary $6,000 deduction specifically for Americans age 65 and older with incomes below $75,000, or $150,000 for a joint return. Seniors above that threshold will be eligible for a smaller, increased deduction. It’s estimated to benefit 33.9 million seniors, including seniors who are not claiming Social Security. This amounts to the largest tax break in American history for our nation’s seniors.

Major Increase in the SALT Deduction: The State and Local Tax (SALT) cap increased from $10,000 to $40,000, allowing taxpayers who itemize their deductions to subtract certain state and local taxes, including property taxes, income taxes, and sales taxes, from their federal taxable income.

Protecting Medicaid/MediCal: Seniors who are also enrolled in Medicaid (Medi-Cal here in California) will see no reduction in their benefits.

More Access to Care: The new law provides a 2.5% increase to physician reimbursement for Medicare. This will increase healthcare access for seniors since more doctors will accept Medicare patients.

Congressman Kiley will always support Social Security. Rep. Kiley has consistently opposed cuts to Social Security, and he cosponsored the Social Security Fairness Act, which became law in January. This law ensures that seniors can collect full Social Security benefits regardless of government pensions or disability benefits.