US tax filing season is underway, and millions of Americans age 65 and older can now take advantage of a new federal tax deduction of up to $6,000. Deductions can help reduce taxable income, especially for retirees who draw Social Security and manage Medicare costs.
Taxpayers age 65 and older are eligible for a $6000 deduction. Here’s All About Eligibility and How Deductions Work with Social Security and Medicare Benefits (Pexel)Read more: Where is my IRS refund? How to use IRS tools to check your refund status
How seniors can claim the new $6,000 deductionSeniors applying for claim need not make separate claim. If the individual qualifies, the amount of deduction will be aligned with the tax return.
However, IRS guidance says it’s important to make sure seniors check the box on IRS Form 1040 or 1040-SR as age 65 or older.
Once the tax return is processed, the enhancement is entered in Schedule 1-A (line 37), which flows to the total deduction line.
Eligibility, phase-out and total senior tax deductionThe $6,000 tax benefit is part of the federal tax law, effective for tax years 2025 through 2028. It allows individuals over age 65 to claim a deduction from their federal taxable income by December 31 of the tax year. Married couples filing jointly where both spouses qualify are eligible for up to $12,000.
The $6,000 tax benefit is in addition to the regular standard deduction, which is $17,750 for single filers and $35,500 for married filers. Therefore, a single senior with income below the qualifying threshold can claim a total exemption of $23,750 before other exemptions and credits.
to qualify For the full $6,000 tax benefit, seniors must have a modified adjusted gross income (MAGI) below certain thresholds.
For single filers, the cutoff starts at $75,000 MAGI, andFor married couples filing jointly, the threshold will start at $150,000The deduction will be reduced by 6% of income above this threshold and phased out entirely for higher incomes.
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Deductions on Social Security benefits and Medicare benefitsAccording to the Social Security Administration, the average annual benefit for a retired worker and those 65 and older is about $24,000.
Under current law, up to 85% of the sum, or about $20,400, may be subject to tax. Almost all seniors will be able to fully offset this taxable amount with the new senior tax deduction.
Rep. Dan Meuser shares resources that say seniors don’t need a separate application to claim a break in benefits. This includes Social Security benefits or Medicare benefits. Deductions are incorporated into the federal tax form process.
