Increase in additional standard deduction for seniors

(a) In general Section 63(f)(1) of the Internal Revenue Code of 1986 is amended by striking $600 and inserting $5,000. (b) Inflation adjustment Section 63(f) of such Code is amended by adding at the end the following new paragraph: (5) Inflation adjustment (A) In general In the case of any taxable year beginning after December 31, 2026, the $5,000 amount in paragraph (1) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding If any increase determined under subparagraph (A) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. (C) Cross reference For inflation adjustment of additional amounts for blind, see subsection (c)(4).. (c) Conforming amendments (1) Section 63(c)(4) of such Code is amended— (A) by striking or subsection (f) in the matter preceding subparagraph (A) and inserting, or paragraph (2) or (3) of subsection (f), and, (B) by striking or subsection (f) in subparagraph (B)(i) and inserting, or paragraph (2) or (3) of subsection (f). (2) Section 63(f)(3) of such Code is amended— (A) by striking paragraphs (1) and (2) and inserting paragraph (2), and (B) by inserting blind after unmarried in the heading thereof. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.