The One Big Beautiful Act of 2025 introduced a special tax break for seniors which aims to reduce taxable income of retirees and older workers.
How it Works
Starting in tax year 2025 through 2028, under Section 70103 of the law, qualified seniors can claim an additional deduction of up to $6,000.
- Married couples filing jointly, if both are 65 years of age or older, can claim up to $12,000 as extra deduction.
- This special deduction is on top of the regular and extra standard deduction for seniors.
- Lastly, this can be claimed regardless of whether the taxpayer claims the standard deduction or chooses to itemize their deductions.
Income Phase Out
At higher income levels, this deduction begins to phase out:
- $75,000 Modified AGI for single filers
- $150,000 Modified AGI for joint filers
Taxpayer Eligibility
To qualify, the taxpayer must be age 65 or older as of the last day of the taxable year. The taxpayer must also:
- Indicate their Social Security Number in their return.
- If they are married, they must file jointly to claim the deduction.
Law Expiration
Unless extended, the senior deduction can only be availed until the tax year 2028.
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