The New Senior Tax Deduction for 2025–2028: What to Know
Tax legislation enacted in 2025 created an additional deduction of up to $6,000 for people 65 and older. Learn who qualifies, how the income phase-out works and how to claim it.
The short version
- Eligible taxpayers 65 and older may deduct up to $6,000 each, or up to $12,000 for a qualifying married couple.
- The deduction phases out above $75,000 of modified adjusted gross income ($150,000 for joint filers).
- It is available whether you itemize or take the standard deduction.
In this guide
Federal tax legislation signed in July 2025, known as the One, Big, Beautiful Bill Act, created a new temporary deduction for older Americans. For tax years 2025 through 2028, eligible people age 65 and older can claim an additional deduction of up to $6,000. Here is how it works.
Who qualifies
You may be eligible if:
- You are age 65 or older by the end of the tax year.
- You have a valid Social Security number.
- If married, you file a joint return. Married couples filing separately cannot claim it.
If both spouses are 65 or older and file jointly, each may claim the deduction, for a combined maximum of $12,000. If only one spouse is 65 or older, the couple may claim up to $6,000.
You do not need to be retired or receiving Social Security to qualify.
The income phase-out
The deduction is reduced for higher incomes. It begins to phase out when modified adjusted gross income (MAGI) exceeds:
- $75,000 for single filers
- $150,000 for joint filers
The deduction is reduced by 6 percent of the amount over the threshold. It is fully phased out at $175,000 for single filers and $250,000 for joint filers.
Example: A single filer age 66 with MAGI of $95,000 is $20,000 over the threshold. The deduction is reduced by $1,200 (6 percent of $20,000), leaving a deduction of $4,800.
Works with standard or itemized deductions
The senior deduction is available whether you take the standard deduction or itemize. It is in addition to the existing extra standard deduction that people 65 and older already receive.
For 2025, for example, a single filer 65 or older could potentially deduct up to $23,750 in total: the $15,750 standard deduction, plus the $2,000 additional standard deduction for age, plus the new $6,000 senior deduction. Amounts for later years are adjusted, so check IRS figures for the year you are filing.
How to claim it
The deduction is calculated on a new IRS schedule (Schedule 1-A) and reported on your Form 1040. Tax software and tax preparers should include it for eligible filers. Make sure your preparer knows your age and has your Social Security number.
What it does not do
- It does not eliminate taxes on Social Security benefits. The rules for determining how much of your benefits are taxable are unchanged.
- It is temporary. Unless Congress extends it, the deduction is scheduled to end after the 2028 tax year.
- It is a deduction, not a credit or a payment. It lowers taxable income, so the actual tax savings depend on your tax bracket. People who already owe little or no federal income tax may see little or no benefit.
Planning considerations
Because the deduction phases out based on MAGI, large one-time income events, such as Roth conversions, property sales or large retirement account withdrawals, could reduce or eliminate it for that year. If you are planning such a transaction, consider discussing timing with a tax professional.
Free tax help
If you need help filing, the IRS's Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) programs, and AARP Foundation Tax-Aide, offer free tax preparation for eligible taxpayers.
Terrameritavi is an independent publication and is not affiliated with the IRS or any government agency. This article is general information, not tax advice. Tax rules can change; consult the IRS or a qualified tax professional.
