- New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
- The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
- Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
- Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.
- Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
- Taxpayers must:
- include the Social Security Number of the qualifying individual(s) on the return, and
- file jointly if married, to claim the deduction.
- Taxpayers must:
NOTE: Up to 85% of Social Security Benefits remain taxable as they have been in the past. That is something the One Big Beautiful Bill could not change. Instead, the new Senior Deduction of $6,000 is meant to offset most the tax on Social Security for most beneficiaries. Social Security must still be reported for tax purposes and the taxable amount will be combined with other income including interest, dividends, pension and IRA distributions to determine what tax bracket applies. The effect of the Senior Deduction is an 'overall' additional $6,000 on top of the standard deduction for non-itemizers.