Older Iowans are being encouraged to take advantage of a new enhanced tax deduction for seniors, which was introduced as part of the Working Families Tax Cuts Act. The measure, passed by Congress and signed into law by President Trump on July 4th, will be in effect for tax years 2025 through 2028.
The deduction is aimed at helping older taxpayers who live on fixed incomes. For the 2025 tax year, individuals must have been born before January 2, 1961 to qualify. Eligible seniors can deduct up to $6,000 if filing individually or up to $12,000 if filing jointly. The benefit begins to phase out for those with incomes above $75,000 for individuals and $150,000 for joint filers.
According to the statement: “This enhanced deduction that President Trump signed into law on July 4th as part of the landmark Working Families Tax Cuts Act adds up to sizable tax savings for seniors.” It also notes that the deduction increases the amount of income seniors can earn before owing federal income tax and is available in addition to other deductions such as the standard deduction and additional standard deduction for elderly or blind taxpayers.
For married couples filing jointly or qualifying surviving spouses in 2025, the standard and additional deductions total $34,700; for single filers it is $17,750. With the new enhanced deduction included, qualifying seniors can shield up to $23,750 (individuals) or $46,700 (married filing jointly) from federal income taxes.
“I hear regularly from Iowa seniors who stretch every dollar to pay the bills. I’m glad the Working Families Tax Cuts law will allow them to keep more of their own money in their pockets,” reads a statement from Sen. Chuck Grassley.
To claim this deduction, eligible individuals must have a valid Social Security Number issued before their 2025 tax return is due. On IRS Form 1040 or 1040-SR, filers should check the box indicating they are age 65 or older; then “the IRS will automatically add the enhanced deduction amount for eligible filers.”
Free basic tax preparation services are available through programs sponsored by the IRS such as Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA). These programs provide free assistance across Iowa with IRS-certified volunteers helping eligible residents prepare their returns. VITA serves those with an adjusted gross household income of $69,000 or less in 2025 while TCE focuses on people aged 60 or older.
Appointments are generally required and fill quickly. Those seeking help should bring wage statements (W-2s), interest/dividend forms (1099s), photo ID, last year’s return and Social Security card. Both spouses must be present when filing electronically on a joint return.
Iowans can find local VITA or TCE sites at https://freetaxassistance.for.irs.gov/s/sitelocator or call (800) 906-9887.
Additional resources include:
– The Iowa Center for Economic Success operates multiple VITA sites statewide; appointments can be scheduled at https://theiowacenter.org/vita.
– Iowa State University students offer free clinics on campus and at several public libraries.
– Iowa State Extension runs VITA clinics in county offices across Iowa: https://www.extension.iastate.edu/humansciences/vita
– Johnson County provides services at Iowa City Public Library until April 8: https://www.johnsoncountyiowa.gov/vita
– University of Northern Iowa accounting students host walk-in clinics Wednesday evenings through early April.
– Residents in Dubuque, Delaware and Jackson Counties may book appointments via Hawkeye Area Community Action Program: https://www.hacap.org/vita
