New $6,000 senior deduction: who qualifies?

Effective for the 2025 tax year (and set to expire after 2028), the recent “One Big Beautiful Bill Act” (“OBBBA”) enacted a new $6,000 deduction for seniors aged 65 or older. This is in addition to the existing standard deduction and the extra standard deduction available to individuals in this age group. For married couples filing jointly where both spouses are 65 or older, the deduction doubles to $12,000.

Here are some details on the deduction, including a primer on who qualifies.

• You must be 65 or older by the end of the tax year.

• The deduction starts to phase out at a modified adjusted income (MAGI) of $75,000 for single filers and $150,000 for married couples filing jointly. The deduction is reduced by 6 percent for every dollar your MAGI exceeds these limits, and completely phases out at $175,000 for single filers and $250,000 for joint filers.

• This new deduction reduces your taxable income, potentially lowering your overall tax bill. This can help seniors, particularly in the middle-income bracket, retain more of their income.

• Itemizing vs. Standard Deduction: Unlike the regular and extra standard deductions, this new bonus deduction can be claimed even if you choose to itemize your deductions.

• To claim the deduction, the taxpayer must include the qualified individual’s Social Security number on the return.

Example: John, 68, and Mary, 66, file jointly for 2025. Their MAGI is $140,000, and since they filed married jointly, they qualified for two senior deductions: $6,000 for John and $6,000 for Mary. Their income is under the $150,000 phaseout limit, so they get the full $12,000 deduction.

While the new bonus deduction for older adults could help many taxpayers, how it impacts you depends on your specific tax situation.

Barry Lisak is an IRS enrolled agent specializing in personal and small business taxes for 30 years. Any questions can be directed to him at 516-829-7283, or mrbarrytax@aol.com.