New Senior Deduction: Tax Relief for Older Americans

Beginning in 2025, a new Senior Deduction will provide extra tax relief for older taxpayers. This deduction was introduced under the One Big, Beautiful Bill to help seniors keep more of their Social Security income and ease the overall tax burden during retirement.

What Is the Senior Deduction?

The Senior Deduction is a temporary $6,000 tax deduction available to taxpayers who are age 65 or older. It is in addition to the standard deduction (or itemized deductions, if applicable), meaning eligible seniors can reduce their taxable income even further.

Details

Amount: $6,000 additional deduction

Eligibility:

• Must be 65 or older during the tax year

• Must have a valid Social Security number

• Married couples must file a joint return to qualify.

• Income limits: The deduction will phase out at higher income levels. Phase-outs for modified adjusted gross income over $150,000 for married taxpayers filing jointly and $75,000 for all other taxpayers.

• Effective years: Tax years 2025 through 2028

Example: Senior Deduction, Filing Status Single

Harold, born in 1958, is 67 in 2025 and files as single.

Standard deduction: $15,750

Senior deduction: $6,000

Total deduction: $21,750

SSN required: Omission is treated as math error under IRC Section 6213(g)(2).

Why It Matters

This new deduction is designed to protect Social Security benefits from being taxed as heavily and to lower overall income tax for retirees with modest or fixed incomes.

If you or your spouse are approaching age 65, it’s a good time to review your tax plan to make sure you take full advantage of this new benefit.

For more details and personalized guidance, contact our office or visit our website’s tax updates section.

New Senior Deduction: Tax Relief for Older Americans. OBBB 2025