TAX TIPS (and other stuff)

By Kelly J. Bullis, CPA

2026-March 21st

 As we approach the final stretch on tax filing, there seems to be a lot of confusion about new provisions for older folks in the One Big Beautiful Bill Act (OBBA for short).  I heard somebody say they thought this new bill was Greek.  You know, think of the Greek dancer chanting “OBBA!”

Because of the new OBBA, senior folks may see as much as $46,700 as their total standard deduction for married folks instead of the original planned $33,200.

Here’s the story.  President Trump wanted to amend Federal law and make Social Security benefits non-taxable.  Unfortunately, he ran into a problem.  In 1984, when President Reagan made a deal with the Democrats to “fix” Social Security, they required any changes to be passed in the Senate by at least 60 votes.  In 2025, the Republicans only had a small majority and would need quite a few Democrats to join them in voting to make Social Security non-taxable.  The Democrats in their usual mood of “if it’s Trump’s idea, we are against it” made getting that 60 vote threshold impossible.  So, President Trump pushed his fellow Republicans to increase the Standard Deduction for seniors and add an additional $6,000 for a single filers and $12,000 for married folks.

The Standard Deduction was increased by $1,700 and the extra $12,000 “Senior Deduction” brought the total deduction for a senior married couple to the now $46,700 level.

But wait, there’s a catch.  That “Senior Deduction” is limited by Modified Adjusted Gross Income.  (MAGI … don’t get me started on that twisted mess, read my prior article published April 6, 2024 about MAGI for more on that).  For a married couple, any MAGI over $150,000 starts to phase out the “Senior Deduction” by 6 cents for every dollar until the phase-out reaches $250,000 of MAGI.  Then the deduction goes to $0.

But wait, there’s more.  This senior deduction only lasts through 2028.  Congress will need to extend it by then or it goes away.  Maybe, Congress will have voted to make Social Security benefits non-taxable by that time?  One can only hope.  If you would like to see that happen, call or write your Congressional Representative and encourage them to get this done.  Congressman Mark Amodei’s phone number is 202-225-6155.

So, if you are a “senior” (aged 65 or older), make sure you take advantage of these new deductions.

Have you heard?  Leviticus 19:32 says, “You shall rise up before the gray head and honor the face of the elderly; and you shall fear your God, I am Yahweh.”

Kelly Bullis is a Certified Public Accountant in Carson City.  Contact him at 775-882-4459.  On the web at BullisAndCo.com  Also on Facebook.