Trump's big bill offers $6K tax break for seniors — but not everyone gets a cut. Here's how much you may save
Starting this year, individuals over the age of 65 can claim $6,000 as a tax deduction in their next filing, according to the Internal Revenue Service. Those who file joint returns can claim this amount individually, which means a married couple could get deductions up to $12,000.
Although this isn't the elimination of all income taxes on Social Security that he promised while campaigning, this new subsidy could still be a helpful financial boost for those who qualify. However, the real impact of this new deduction depends on your income bracket.
Here's a closer look at how much you could save at different levels of income.
Don't miss
Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast)
Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it
Low income
Low-income seniors might not notice this new deduction because they already benefit from a standard deduction that reduces or eliminates the income taxes they owe. As of 2025, the standard deduction for someone over the age of 65 is up to $18,500 individually and up to $32,300 for joint filers.
This category includes a significant number of American seniors. According to the KFF, one in three adults over the age of 65 had an income below $28,080 in 2022.
Middle income
Households with relatively modest incomes could see the most benefit from this new deduction.
Because the deduction starts to phase out for single filers earning over $75,000 and married couples making over $150,000 — with full disqualification at incomes above $175,000 for individuals and $250,000 for couples — the Urban-Brookings Tax Policy Center projects that middle- and upper-middle-income households stand to gain the most.
Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings.
Seniors with incomes between approximately $80,000 and $130,000 are expected to benefit the most from this provision, which would cut their taxes by an average of $1,100, or around 1% of their after-tax income, according to their calculations.
High income
With a full phase out of the deduction at individual incomes above $175,000 and joint incomes above $250,000, high income tax payers won't benefit from this new incentive at all.
Caveats
Given all the rules and limitations, this new tax rule could best be described as helpful but limited. Based on the income limits, the Urban-Brookings Tax Policy Center estimates that less than half of all seniors could see a tax reduction because of this new deduction.
The rule is also time-limited and applies only to federal income taxes between 2025 and 2028.
Altogether, the new deduction offers a modest cut to a highly specific group of seniors for a relatively short period of time. However, it does have a long-term impact on other government programs that many seniors rely on: Social Security and Medicare.
The Committee for a Responsible Federal Budget (CRFB) projects that the new set of tax policies implemented by the One Big Beautiful Bill Act (OBBBA) will hasten the insolvency of both the Social Security and Medicare trust funds, moving their depletion date up from 2033 to 2032 — a full year sooner than earlier forecasts.
What to read next
Robert Kiyosaki warns of 'massive unemployment' in the US due to the 'biggest change' in history — and says this 1 group of 'smart' Americans will get hit extra hard. Are you one of them?
How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement
Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead
Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
26 minutes ago
- Yahoo
Why This Analog Semiconductor Stock Is A Top Undervalued Pick
Following its second-quarter results reported on Monday, NXP Semiconductors (NASDAQ:NXPI) has seen its outlook reassessed by Wall Street analysts. The company announced second-quarter revenue of $2.93 billion, a 6% decrease year-over-year, yet still surpassing analyst estimates of $2.90 billion. Looking ahead, NXP anticipates third-quarter revenue to range from $3.05 billion to $3.25 billion, versus estimates of $3.05 Fitzgerald analyst Matthew Prisco reiterated an Overweight rating on NXP Semiconductors, maintaining a $250 price forecast. Meanwhile, Stifel analyst Tore Svanberg maintained a Hold rating on the company, while increasing his price forecast from $170 to $210. Cantor Fitzgerald's Analysis Prisco noted that NXP Semiconductors delivered a modest beat-and-raise quarter, driven by strong performance in the Industrial IoT segment. While the analyst would have preferred the upside from automotive, management guided for continued strength based on a cyclical recovery in core end markets and company-specific growth catalysts. He noted that gross margins came in slightly above expectations due to more substantial revenue, while operating expenses ran higher than expected, primarily due to merger and acquisition activity. However, operating expenses aligned with NXP Semiconductors' long-term intensity targets when adjusted for the elevated revenue levels. Prisco noted that the company also showed encouraging inventory management. Days Inventory Outstanding (DIO) dropped by 11 days quarter-over-quarter to 158, and channel inventory remained stable at nine weeks, below the target of eleven weeks, indicating results were likely driven by genuine end-market demand rather than inventory builds. That said, there were a few points of contention, as per the analyst. The gross margin guidance came in a bit softer than previously implied; at $3.15 billion in revenue, gross margin should have been closer to 57.5% based on prior comments, he said. In addition, operating margin guidance was pressured by M&A-related costs, slightly muting the leverage typically expected during an upcycle. Heading into the earnings call, Prisco remained focused on the quality and sustainability of this beat and raise. While the near-term performance may be weighed down by NXP Semiconductors' exposure to the auto sector, the analyst remained optimistic about the long-term opportunity. He noted NXP Semiconductors as one of the most undervalued names in the analog semiconductor space, citing strong secular growth drivers and a resilient through-cycle business model. Stifel's Take Svanberg viewed NXP Semiconductors' June quarter as primarily in line with expectations, with revenue of $2.93 billion growing 3.2% quarter-over-quarter and beating estimates by 0.9%. Adjusted EPS reached $2.72, exceeding the analyst's and Street estimates by $0.06 and $0.04, respectively. He noted that all end markets performed within anticipated ranges, showing a stable demand backdrop. Free cash flow (FCF) came in strong at $696 million, 24% of revenue, rising 63% quarter-over-quarter, Svanberg noted. He said that on a trailing twelve-month (TTM) basis, FCF rose to $1.98 billion, improving by $120 million from the prior quarter. TTM FCF leverage ticked up slightly to 4.20x. However, TTM EBITDA dipped to $4.75 billion from $4.89 billion. Net leverage increased to 1.75x due to rising net debt, which hit $8.31 billion following shareholder returns and the TTTech Auto acquisition, Svanberg noted. Looking ahead, management guided for a stronger third quarter, he noted. NXP Semiconductors expects revenue to hit a midpoint of $3.15 billion, a 7.7% sequential increase and above both the Street and the analyst's estimates. EPS guidance also came in stronger, with a midpoint of $3.10-$0.37 above the analyst's estimate and $0.04 above the Street's. Gross margin and operating margin guidance also came in ahead, signaling improving profitability, Svanberg noted. Despite these positives, the analyst flagged some caution. He noted that NXP Semiconductors' results and outlook still trail historical seasonal trends, reinforcing its role as a 'late corrector' in the semiconductor space, particularly compared to smaller peers that already reset more steeply. The team acknowledged lingering macro uncertainty heading into the second half of 2025 and stressed that, while NXP Semiconductors hasn't yet seen significant order volatility or tariff impacts, the long-term visibility remains cloudy, Svanberg said. As a result, the analyst awaited more evident signs of a sustained recovery in demand, margin expansion, or macro clarity. Price Action: NXPI stock is down by 0.66% to $226.79 at the last check on Tuesday. Photo by Lukassek via Shutterstock Latest Ratings for NXPI Date Firm Action From To Feb 2022 Needham Maintains Strong Buy Feb 2022 Morgan Stanley Maintains Equal-Weight Feb 2022 Raymond James Maintains Outperform View More Analyst Ratings for NXPI View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Why This Analog Semiconductor Stock Is A Top Undervalued Pick originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
26 minutes ago
- Yahoo
Sherwin-Williams cuts outlook, Philip Morris raises outlook
Yahoo Finance anchor Josh Lipton tracks today's top moving stocks and biggest market stories in this Market Minute. Sherwin-Williams (SHW) reported a miss for the second quarter and cut its full-year guidance. Philip Morris (PM) mostly topped second quarter estimates but fell short on organic revenue growth expectations. The company also raised its full-year profit forecast. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's Market Minute. U.S. stocks wavering after notching new all-time highs in the prior trading day. Wall Street combing through a fresh wave of earnings that brought a tariff warning from General Motors. Market also getting weighed down by decline in chip stocks. And Sherwin-Williams reporting a miss on earnings for the second quarter, the company noting demand was softer than anticipated through June, adding that it does not see catalyst to change that trajectory at this time. Softer demand leading to Sherwin-Williams adjusting its full-year guidance downward. And Philip Morris International that topped earnings estimates but falling short for organic revenue growth expectations for the second quarter. Company shipments of its Zen nicotine pouches also missing expectations. Looking ahead, Philip Morris did raise its full-year profit forecast. And that's your Yahoo! Finance market minute. For more on what's trending, scan the QR code below to track the best and worst performing stocks of the session. Related Videos Homebuilder stocks, Coca-Cola earnings, Kohl's stock skyrockets Circle stock gets hit with another Sell rating. Here's why. Big Tech earnings: Why this 'common thread' will be 'key' Meme stock rally heats up: Kohl's stock soars Sign in to access your portfolio
Yahoo
26 minutes ago
- Yahoo
Sparkling Ice and Giant Eagle join forces to support military veterans struggling with invisible wounds of war
K9s For Warriors PTSD service dog in training - Image 1 K9s For Warriors PTSD service dog in training - Image 2 K9s For Warriors PTSD service dog in training - Image 3 PRESTON, Wash. and PITTSBURGH, July 22, 2025 (GLOBE NEWSWIRE) -- In a month defined by freedom, Sparkling Ice, the No. 1 sparkling water brand in the U.S., and Giant Eagle Inc., are giving back to freedom's defenders by providing the loyalty and healing only a service animal can bring. True patriotism shows up in many forms, such as a black Labrador puppy in Ponte Vedra, Florida, that has started training to become a K9s For Warriors service dog for a veteran with PTSD. 'At Giant Eagle, we continually look for ways to support the communities we serve, and we know that for some U.S. veterans and others who live with PTSD, shopping in a busy supermarket can be an overwhelming experience,' said Jannah Drexler, public relations manager at Giant Eagle. 'We are excited to team up with Sparkling Ice and K9s For Warriors to fund training for a service dog to help improve the quality of life for a very deserving U.S. veteran in Cleveland, Ohio.' Since 2023, support from Talking Rain Beverage Company, the makers of Sparkling Ice, has enabled K9s For Warriors to rescue, train and pair 17 service dogs with veterans in need. Last year the brand sponsored the 'presidential campaign' of Rocky, a service dog in training who spent his time on the campaign trail advocating for the needs of veterans and shelter animals. This year, Rocky's story was shared again to help promote a new, convenient six-pack offering from Sparkling Ice, which has been co-branded for a limited time, after which it will be available in its everyday packaging. 'When two leading organizations join forces to give back to the community, they can make an extraordinary impact,' said Ken Sylvia, CEO of Talking Rain. 'K9s For Warriors meets a critical, ongoing need within the veteran community. Right now, 370 U.S. veterans are on a waitlist for a trained service dog, with another 284 applications pending. It's a privilege to partner with Giant Eagle so we can mobilize and expand K9s For Warriors' ability to serve every veteran who needs help.' Through the partnership, Giant Eagle and Sparkling Ice intend to spread awareness about the importance and value of service dogs for those with PTSD and other hidden wounds. Giant Eagle Team Members will also have the opportunity to name the black Lab puppy in training. This future service dog will star in various social media collaborations, visit Giant Eagle's Pittsburgh headquarters and meet the public at select store locations. For decades, service dogs have supported people with visual, hearing and mobility impairments. Now, research shows that service dogs can aid veterans who struggle with mental health concerns too. In a first-of-its-kind study conducted by Dr. Maggie O'Haire of the University of Arizona's College of Veterinary Medicine, veterans who were paired with trained service dogs reported decreased severity of PTSD symptoms and lower levels of anxiety and depression compared to veterans without service dogs. All the service dogs included in the study were trained by K9s For Warriors. Since its founding, K9s For Warriors has paired more than 1,157 U.S. veterans with trained service dogs. While most of the dogs trained by the organization are rescued, K9s For Warriors also has a puppy program where puppies are donated by select breeders from across the country and raised by volunteers to reach more veterans in need. About Talking Rain® Beverage Company Talking Rain, the makers of Sparkling Ice®, is a family-owned company based in Preston, Washington. Through nearly four decades of redefining the sparkling water category, Talking Rain has crafted a remarkable collection of full-flavored, better-for-you beverages, including the No. 1 sparkling water brand in the U.S., Sparkling Ice (also available in Caffeine and Energy), AQA and Popwell, a cold-crafted prebiotic soda. Talking Rain drinks are enriched with vitamins and antioxidants and come in a delicious array of bold flavors. Talking Rain believes in sharing its success to support healthy communities, personal wellbeing, and greater inclusivity. We live life in full flavor and believe the world should, too. About Giant Eagle, Inc. Giant Eagle, Inc., ranked among Forbes magazine's largest private corporations, is one of the nation's largest food retailers and distributors. Founded in 1931, Giant Eagle, Inc. has grown to be a leading foodand pharmacy retailer in the region, with more than 200 stores throughout western Pennsylvania, north central Ohio, northern West Virginia, Maryland, and Indiana. About K9s For WarriorsDetermined to end Veteran suicide, K9s For Warriors is the leading nonprofit organization that provides trained Service Dogs to military Veterans nationwide suffering from PTSD, traumatic brain injury, and/or military sexual trauma — at no financial cost to the Veteran. Backed by groundbreaking scientific research from the University of Arizona's OHAIRE Lab, the program demonstrates how Service Dogs can help mitigate symptoms of PTSD while simultaneously restoring confidence and independence. Founded in 2011 as a 501(c)(3) nonprofit organization, K9s For Warriors is committed to saving lives at both ends of the leash by primarily rescuing dogs and pairing them with Veterans in need. The organization is also dedicated to raising awareness about Veterans' mental health and driving policy-level reform. To date, K9s has paired more than 1,000 Veterans with life-changing Service Dogs and rescued more than 2,000 dogs. Find more information at | Facebook | Instagram | X Media Contact Annie AlleyFirmani + Associates206-466-2713talkingrain@ Photos accompanying this announcement are available at beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten