Taxes are going to change for retirees under Trump’s ‘big beautiful bill’. Here’s why you can’t afford to waste time

Core Insights - The new tax relief measures for older Americans are limited and temporary, with specific expiration dates for various deductions [1][4][6] - The One, Big, Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, has significant implications for older Americans, including both tax benefits and cuts to social safety nets [6][7] Tax Relief Measures - Older Americans aged 65 and above can claim a bonus tax deduction of $6,000 for single filers and $12,000 for joint filers, in addition to the standard deduction [4][6] - The state and local tax (SALT) deduction has increased from $10,000 to $40,000, but is set to revert to $10,000 in 2030 [2][1] - Individuals earning up to $75,000 or couples with a combined income of up to $150,000 can claim the full bonus deduction, which phases out for individuals earning over $175,000 and couples over $250,000 [3][4] Impact on Social Safety Nets - The OBBBA includes a $1.1 trillion cut to federal spending for the Affordable Care Act and Medicaid over the next decade, which could affect older Americans significantly [7][8] - Changes to the Supplemental Nutrition Assistance Program (SNAP) will require able-bodied adults under 65 to work or pursue education to qualify, impacting older adults as well [12][13] - An estimated 11.8 million people may lose health coverage by 2034 due to the cuts and revised eligibility requirements [8][12] Financial Planning for Seniors - Older Americans have a crucial four-year window to adjust their tax plans and take advantage of the temporary tax relief measures [5][24] - Building an emergency fund and investing in inflation-hedging assets like gold are recommended strategies for enhancing financial security [17][26] - Maximizing contributions to tax-advantaged accounts such as 401(k)s and IRAs is essential for securing retirement [25][24]