What’s in the ‘One Big Beautiful Bill’ for Older Americans?

The deduction is reduced for higher earners, up to $175,000 for a single filer and $250,000 for a couple. Above those thresholds, you don’t qualify.

You can claim this new deduction even if you otherwise itemize deductions on your tax return. If you don’t, you can add it to the existing standard deduction, which is already higher for taxpayers 65 and older. But you’ll be able to do so only for the next four years — the bonus deduction is set to expire in 2029.

Older adults who are paying off cars or are liable for local property taxes may also get some short-term tax relief. The new legislation allows car owners to deduct up to $10,000 in interest payments on loans for certain vehicles and increases the maximum SALT (state and local tax) deduction from $10,000 to $40,000. Both of these changes are temporary, expiring after four and five tax years, respectively.

Affordable Care Act plans

About 5.5 million adults ages 55 to 64 get individual health insurance from ACA marketplaces, according to the health policy nonprofit KFF. But the legislation imposes new documentation and preenrollment eligibility verification for ACA coverage, changes that “will add even more red tape for enrollees and further drive down coverage,” AARP Chief Advocacy and Engagement Officer Nancy LeaMond wrote in a June 29 letter to Senate leaders.

The legislation also allows enhanced tax credits for ACA coverage to expire, which KFF estimates will increase out-of-pocket premium payments for people with such plans by 75 percent on average. KFF and other health policy groups say these premium hikes are expected to hit older adults especially hard.

Medicaid eligibility

The bill sets new work requirements that can disqualify a person from enrolling in Medicaid and create additional red tape to show compliance.

Medicaid-eligible adults ages 19 to 64 who are applying for coverage, or who received coverage through the ACA expansion of Medicaid, would be required to work at least 80 hours per month or fulfill similar criteria (for example, participating in job training or community service). An AARP Public Policy Institute analysis found that 9 million Medicaid recipients between the ages of 50 and 64 would face these requirements.

“This creates a steep coverage cliff for those in their 50s and early 60s — particularly for those nearing retirement or working part-time — who may be left with no affordable coverage option at all,” LeaMond wrote in her June 29 letter.

Food assistance

In 2023, more than 11 million people age 50 and older received food aid through the Supplemental Nutrition Assistance Program (SNAP). The new legislation cuts federal funding for SNAP, previously known as food stamps. 

Currently, the federal government funds the full cost of SNAP benefits. Starting in October 2027, most states will have to pay between 5 and 15 percent of the cost of the SNAP benefits their residents receive. States will also be responsible for 75 percent of the program’s administrative costs, up from 50 percent.

“To manage these new costs, states may be forced to restrict eligibility, limit benefits or withdraw from the program entirely, which would make it more difficult for eligible individuals to access food assistance,” LeaMond wrote on June 29. 

The legislation also raises the age limit for work requirements for SNAP benefits eligibility, from 55 to 64. That means people up to age 64 will be required to work at least 20 hours per week to receive benefits for more than three months in three years, unless they qualify for one of the narrow exemptions.

Even for those who meet the work requirements, the associated red tape could be difficult to navigate, ultimately causing some otherwise eligible people to lose benefits, AARP and other advocates say.