As a result of the 2025 One Big Beautiful Bill Act, taxpayers aged 65 and older can claim a new, temporary deduction of up to $6,000 per person. This new deduction is separate from the regular senior deduction and can be claimed whether you itemize with Schedule A or take the Standard Deduction.
Details of the deduction include…
1 – $6,000 for single filers and $12,000 for married couples filing jointly if both are age 65 or older.
2 – The deduction is available for tax years 2025 – 2028.
3 – It is reduced for higher-income taxpayers based on their modified adjusted gross income (MAGI). For Single Taxpayers. the deduction phases out for MAGI between $75,000 and $175,000. On a Married Filing Joint Return, it phases out between $150,000 and $250,000.
4 – To claim the deduction, you must be 65 or older by the end of the tax year and must provide a valid Social Security Number on your return.
The new $6,000 bonus is added on top of the regular standard deduction and the existing senior deduction. This is how the total deduction would break down for eligible filers in the 2025 tax year:
65-Year-Old Single Filer:
1 – Standard deduction: $15,750
2 – Existing senior deduction: $2,000
3 – New bonus deduction: $6,000
Total maximum deduction: $23,750
65-Year-Old Married Couple (Both Qualify):
1 – Regular standard deduction: $31,500
2 – Existing senior deduction: $3,200 ($1,600 each)
3 – New bonus deduction: $12,000 ($6,000 each)
Total maximum deduction: $46,700
Let me leave you with this…
The new bonus deduction doesn’t eliminate taxes on Social Security Benefits but it may reduce your taxable income enough to lower your overall tax liability. Please understand that if you are collecting Social Security you may still need to pay tax on it.
Also please realize that this provision is set to expire after the 2028 tax year unless Congress extends it. But this is the sort of tax law that normally gets voted in as a permanent change.
If they didn’t extend it, could you imagine the backlash both parties would get from the Senior Community. Understand that the percentage of seniors who vote is substantially higher than the percentage of people who vote in their 20’s.
Neither side of the aisle is going to want to anger the seniors, so this is probably something we’ll see for a long time.
It’s also something we’ll need to take into consideration when doing your tax planning in the fall. If you need to talk, you know my number…
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
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