INTRODUCTION
Starting in 2025, a new tax provision offers individuals age 65 or older an additional bonus deduction of up to $6,000 per person. This fresh tax break, available through 2028, can notably lower your tax bill by stacking on top of existing deductions reserved for seniors. Here’s how it works, who benefits, and what you should know.
SUMMARY & DETAILS
New Bonus Deduction: Eligible taxpayers gain a $6,000 deduction (singles), or $12,000 if both spouses are 65+ and file jointly.
In Addition to Existing Deductions: This bonus sits atop the regular standard deduction and age-based extra standard deduction.
Eligibility: Must be age 65 by December 31 of the tax year. Available from 2025 through 2028.
Income Limits & Phase-Out (2025 tax year filing):
- Begins to phase out at a MAGI above $75,000 (single) or $150,000 (joint).
- Fully phases out at $175,000 for singles and $250,000 for joint filers.
Available to Both Standard & Itemizers: You can claim it whether you itemize or not.
WHO IT IMPACTS
This deduction is most beneficial for middle-income seniors who currently itemize or take the standard deduction—and whose incomes fall below the phase-out limits. It’s especially helpful if Social Security, pension, or retirement income qualifies—but isn’t low enough to be fully shielded by previous deductions.
Effective Dates
Tax Years: 2025 → 2028
First Application: When you file your 2025 tax return (typically in spring 2026)
Sunset Date: The deduction expires after 2028 unless renewed by Congress.
EXAMPLE: HOW IT MIGHT HELP A SENIOR COUPLE
Meet John and Mary, both 66, Married Filing Jointly, MAGI of $80,000 in 2025.
| Deduction Component | Amount |
| Base standard deduction (joint) | $31,500 |
| Age-65+ extra standard deduction | $3,200 |
| New senior bonus deduction (joint) | $12,000 |
| Total Deduction | $46,700 |
By claiming this full package, John and Mary can deduct $46,700 from their taxable income on their 2025 return—offering a meaningful tax reduction for 2026 filing.
LET’S TALK
This new $6,000 senior deduction could offer a meaningful benefit for many retirees—but timing, income levels, and filing strategy will determine how much of a difference it makes. If this could apply to you, it’s a good idea to speak with a tax professional in preparation for your 2025 return.
Remember, the goal of tax planning is not to avoid taxes, but to ensure you pay only what you owe while maximizing your financial resources for your current needs and future goals. By implementing effective tax planning strategies, you can take a proactive approach to managing your wealth and secure your financial future.
Additional Resources
- IRS summary: https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors
- AARP explainer on qualification and phase-out thresholds: https://www.aarp.org/money/taxes/what-to-know-new-tax-law-2025.html
- Kiplinger’s overview for seniors: https://www.kiplinger.com/taxes/extra-standard-deduction-age-65-and-older
Disclosures
TruWealth Advisors, LLC is an SEC registered investment adviser located in Louisiana. Registration does not imply a certain level of skill or training. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or financial advice. You should consult your own tax, legal and financial professionals before engaging in any transaction. Past performance does not guarantee future results. Additional information about TruWealth Advisors, including our registration status, fees, and services is available on the SEC’s website at https://adviserinfo.sec.gov/firm/summary/306876.