Starting in 2025, seniors will have access to a new tax break that could help ease the burden of rising living costs. Thanks to the One Big Beautiful Bill Act (OBBBA), a $6,000 senior tax deduction will be available each year through 2028, potentially putting more money back into retirees’ pockets.
Who Qualifies?
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Individuals age 65+ with a modified adjusted gross income (MAGI) under $75,000 can claim the full $6,000 deduction.
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Married couples filing jointly, where both spouses are 65 or older, can each claim the deduction—meaning a combined $12,000 benefit if household MAGI is below $150,000.
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The deduction phases out gradually as income rises, disappearing entirely at $175,000 MAGI for single filers and $250,000 for joint filers.
How Does It Work With the Standard Deduction?
The new senior deduction stacks on top of the standard deduction and the age-related bump already available to older taxpayers. For 2025:
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Single seniors could deduct up to $23,750 ($6,000 + $15,750 + $2,000 age bump).
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Married couples filing jointly could deduct up to $46,700 ($12,000 + $31,500 + $3,200 age bump).
Because it is an above-the-line deduction, you can claim it whether you itemize or not.
What About Social Security?
The new deduction does not directly change how Social Security benefits are taxed. However, by lowering taxable income, it may help some retirees stay below the thresholds where benefits become taxable—potentially reducing the overall tax bite on retirement income.
Planning Ahead
This tax benefit is set to expire after 2028 unless Congress renews it. With income limits and a phase-out structure, seniors may want to work with a financial advisor to ensure they maximize the deduction while it’s available.
Bottom line: The new $6,000 senior deduction offers meaningful tax relief for many retirees. Used strategically, it can help stretch retirement income further—especially when combined with smart Social Security and tax-planning strategies.
