Recent tax legislation, the One Big Beautiful Bill Act, introduces a new temporary annual tax deduction for individuals aged 65 and older. This deduction is $6,000 per qualifying individual and is available for tax years 2025 through 2028.
Income Phaseout Limits
The deduction begins to phase out for:
- Single filers with income over $75,000
- Married couples filing jointly with income over $150,000
It phases out completely at:
- $175,000 for single filers
- $250,000 for joint filers
Standard Deduction + Senior Benefits
Tax filers can choose to itemize deductions or take the standard deduction. The new $6,000 senior deduction is available regardless of which option is chosen.
2025 Standard Deduction Amounts for Seniors
| Filing Status | Base Standard Deduction | Age 65+ Add-on | New Senior Deduction | Total Deduction |
|---|---|---|---|---|
| Single, age 65+ | $15,750 | $2,000 | $6,000 | $23,750 |
| Married filing jointly, one spouse age 65+ | $31,500 | $1,600 | $6,000 | $39,100 |
| Married filing jointly, both spouses age 65+ | $31,500 | $3,200 | $12,000 | $46,700 |
Note: The age-based add-on ($2,000 for singles, $1,600 per qualifying spouse for joint filers) is part of existing tax law and remains in effect alongside the new $6,000 deduction.
Source: "Breaking Down The "One Big Beautiful Bill Act," Kitces.com – https://www.kitces.com/blog/obbba-one-big-beautiful-bill-act-tax-planning-salt-cap-senior-deduction-qbi-deduction-tax-cut-and-jobs-act-tcja-amt-trump-accounts/
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