Beginning immediately, seniors in California will benefit from the largest tax relief in U.S. history due to a new budget law. The law was supported by Congressman Kiley, who emphasized its importance for those living on fixed incomes as costs rise.
The budget introduces several changes aimed at improving seniors’ financial situations. Notably, there will be no tax on Social Security and an increased standard deduction. For single filers, the deduction rises to $15,750, while married couples filing jointly will see it increase to $31,500. This adjustment applies automatically when choosing the standard deduction on federal returns.
Additionally, a special $6,000 deduction is available for seniors aged 65 and older with incomes below $75,000 or $150,000 for joint returns. Those above this threshold are eligible for a smaller increased deduction. It is estimated that 33.9 million seniors will benefit from this provision.
The State and Local Tax (SALT) cap has also been raised from $10,000 to $40,000. This allows taxpayers who itemize deductions to subtract certain state and local taxes from their federal taxable income.
In terms of healthcare, the law ensures no reduction in benefits for seniors enrolled in Medicaid (Medi-Cal in California). Furthermore, there is a 2.5% increase in physician reimbursement for Medicare services, which aims to improve healthcare access by encouraging more doctors to accept Medicare patients.
Congressman Kiley remains committed to supporting Social Security. He has consistently opposed cuts and co-sponsored the Social Security Fairness Act passed in January. This act guarantees that seniors receive full Social Security benefits regardless of other government pensions or disability benefits.
