What Americans Over 65 Need to Know
A new federal tax deduction could provide tax relief for many older Americans. Beginning with the 2025 tax season, individuals age 65 and older may qualify for a new $6,000 deduction.
What is the new senior tax deduction?
The One, Big, Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. One of the provisions included allows eligible individuals who are age 65 and older to claim an additional deduction of $6,000. This is on top of the standard or itemized deduction under existing tax law.
- Eligible individuals can deduct $6,000 and married couples where both spouses qualify can deduct up to $12,000 total.
- This new tax deduction is effective for tax years 2025 through 2028.
Who qualifies for the senior deduction?
There are age requirements, income limits, and phase-out limits.
- Qualifying taxpayers must be 65 or older by December 31, 2025 (your birthday must be on or before January 1, 1961).
- Single filers may take the full $6,000 deduction if their modified adjusted gross income (MAGI) was below $75,000 last year.
- Married filing jointly must have MAGI below $150,000 to deduct the full $12,000.
- Deductions begin to phase out above these income thresholds. It is fully phased out at $175,000 for single filers, and $250,000 for married couples.
- Individuals using the filing status of Married Filing Separately do not qualify.
- The deduction is available for both itemizing and non-itemizing taxpayers.
This deduction does not eliminate federal taxes on Social Security benefits, instead, it reduces taxable income, which may lower the amount of tax owed. If you want to know more about your eligibility and how it may affect your taxes, it can be helpful to speak with your tax accountant. If you would like more information, please contact us.
