What is the $4,000 bonus for seniors?: Understanding the 2025 Tax Deduction
According to the Center on Budget and Policy Priorities, almost half of seniors already pay no federal income tax. The so-called "$4,000 bonus for seniors" is not a direct payment, but rather a temporary tax deduction introduced in 2025 to provide some relief for certain eligible older Americans. It is designed to lower taxable income, though its actual cash value depends on your specific income and tax bracket.