The One Big Beautiful Bill Act allows taxpayers age 65+ to claim an additional $6,000 deduction in 2025.
The One Big Beautiful Bill Act allows taxpayers age 65 and older to claim an additional $6,000 in deductions without needing to itemize their deductions. This deduction, which will be implemented in the 2025 tax year (returns filed in 2026), supplements the standard additional deduction available to seniors and the blind. Additionally, it applies on a separate basis, allowing married couples filing joint returns to claim up to $12,000 in total. The ‘extra’ exemption for senior citizens is set to expire at the end of the 2028 fiscal year.
Seniors 65 and older can claim a new $6,000 deduction starting in 2025 in addition to the existing deduction. (AP)Also read: Social Security payments on Feb. 11: Here’s who gets paid and who doesn’t
Who is eligible for the new tax exemption?To qualify for the new deduction for seniors, you must be age 65 or older by December 31, 2025 and file jointly as a single taxpayer, head of household, surviving spouse or married couple. This exemption is not accessible to married couples who file separately. However, there is an income threshold. For individual filers, the deduction begins when your modified adjusted gross income (MAGI) exceeds $75,000, and is fully excluded at $175,000.
The deduction begins at $150,000 of income for married couples filing a joint return and is completely eliminated at $250,000.
For single taxpayers, the maximum deduction is $6,000, while for joint filers, the maximum deduction is $12,000.
Also read: Social Security Alarm: Retirees Soon to Face $460 Monthly Cut? Here’s what we know
What are the new tax breaks for seniors?Additional tax benefits available to seniors do not require itemizing deductions and can be claimed directly on Form 1040 or 1040-SR.
Your date of birth is an important piece of information to provide on your tax return. Your eligibility is automatically determined by the IRS if you are age 65 or older. Your eligibility should be automatically recognized by a trusted tax preparation software, which will then apply the deduction on your behalf.
Be sure to include your correct Social Security number and check the age box (65+) if you’re filing on paper.
Learn about discounts for seniorsThe current exemption for the elderly and blind, which is $2,000 for single filers and $1,600 for married couples filing separately, could be supplemented with the new exemption.
For 2026 tax returns, the additional standard deduction will be $2,050 for single filers and $1,650 for each qualifying spouse of married couples filing jointly.
If a person chooses not to itemize their deductions, they can still claim the standard deduction, which is separate from both of these deductions.
How does the new senior deduction work?The standard deduction is $15,750 for a 72-year-old individual filer with income of $70,000. They qualify for both the new $6,000 deduction and the current $2,000 standard deduction for seniors. This results in a total deduction of $23,750, resulting in a taxable income of $46,250.
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