A new $6,000 tax break for seniors, costing $91 billion, boosts income for many but doesn’t eliminate Social Security taxes and accelerates Medicare and Social Security insolvency.

A new $6,000 tax deduction for seniors aged 65 and older, introduced in 2025, reduces taxable income but does not eliminate taxes on Social Security benefits. The temporary measure, set to expire after 2028, offers up to $12,000 for couples and boosts average after-tax income by about $670, though higher earners and those below the standard deduction threshold see no benefit. It is projected to cost nearly $91 billion over four years, increase the national deficit, and accelerate Social Security and Medicare insolvency to 2032.