Find Out Whether You Qualify For The New Senior Tax Break
If you’re 65 or older, you may owe less in taxes when you file next year. A new senior tax break included in Trump’s tax legislation, the One Big Beautiful Bill (OBBB), adds an extra $6,000 standard deduction for Americans aged 65 and above.
This provision is temporary and will expire in 2028, giving seniors only a few years to take advantage of the benefit.
Below is an explanation on how the deduction works, who qualifies, and how it might influence your tax-filing strategy.
Who Qualifies for the Senior Tax Break?
To qualify, you must turn 65 by the end of the tax year. The deduction applies to individuals and married couples filing jointly. Each qualifying spouse can claim the deduction, meaning couples can receive up to $12,000.
Higher-income seniors, however, will not receive the full benefit. The deduction begins phasing out for:
- Individuals earning over $75,000
- Married couples earning over $150,000
The deduction disappears completely at $175,000 for single filers and $250,000 for joint filers.
Because Social Security benefits are taxed based on your combined income—which includes your AGI, investment income, pensions, capital gains, and half of your Social Security benefits—the new senior deduction may also reduce how much of your Social Security income gets taxed by lowering your AGI.
How the New Senior Tax Deduction Works
This new OBBB deduction is added on top of the existing standard deduction and the traditional extra deduction for seniors.
Currently, the additional senior deduction is:
- $2,000 for single filers
- $3,200 for married couples filing jointly
Starting in tax year 2025, eligible seniors can also claim the new $6,000 deduction—and they can take it whether they use the standard deduction or itemize.
For 2025, the standard deduction is:
- $15,750 for single filers
- $31,500 for married couples filing jointly
With the extra $6,000 per eligible person, seniors can deduct:
- Up to $23,750 (single)
- Up to $46,700 (married filing jointly)
Important: The new deduction stacks with all other deductions you qualify for, including the existing senior deduction.
Rethinking Your Tax Strategy
The OBBB may prompt older taxpayers to reconsider how they file—especially when choosing between itemizing and taking the standard deduction.
Since the Tax Cuts and Jobs Act (TCJA) took effect in 2018, the percentage of taxpayers who itemize deductions has dropped from about 30% to under 10%, largely because of the sharply increased standard deduction.
The OBBB further increases the standard deduction for seniors, although the new tax break is still available to those who itemize.
Itemizing may still be worthwhile for seniors who have:
- High medical expenses
- Large charitable donations
Significant state and local taxes (especially with changes to the SALT deduction under the OBBB)
For those close to the income phase-out thresholds, careful planning could help preserve eligibility. Strategies might include:
- Delaying retirement account withdrawals
- Deferring the sale of appreciated assets
- Bundling medical or charitable deductions into the same tax year
Because this benefit is only guaranteed from 2025 through 2028, planning becomes even more important—especially for seniors with fluctuating income.
The Bottom Line
The new senior deduction is one of several OBBB changes designed to deliver targeted tax relief. With thoughtful tax planning, it can offer meaningful savings. If you are nearing age 65 or already qualify, consider consulting a tax professional to understand how the new rules apply to your situation and how to take full advantage of the deduction.
Source: Investopedia
