A new federal tax break is now available for millions of older Americans. Seniors aged 65 and older can claim up to $6,000 in tax deductions under a law signed in July 2025.
The deduction is part of the One Big Beautiful Bill Act, which took effect for tax years 2025 through 2028. It was designed to help seniors reduce their federal tax bills, especially on Social Security benefits.
But not everyone will qualify. Income limits decide who gets the full amount — and who gets nothing at all.
Who qualifies for the $6,000 senior tax deduction?
To claim the deduction, you must turn 65 by December 31 of the tax year. For 2025 taxes filed in 2026, that means you must be 65 by December 31, 2025.
Married couples must file jointly to qualify. If you file separately, you cannot claim it. Both spouses’ Social Security numbers must appear on the tax return.
The deduction works for people who take the standard deduction or itemize. It stacks on top of your regular deduction.
Income limits and phaseout rules
The full $6,000 deduction is available only if your modified adjusted gross income (MAGI) stays below certain limits:
- $75,000 or less for single filers, head of household, or surviving spouses
- $150,000 or less for married couples filing jointly
If your income goes above those amounts, the deduction starts to shrink. According to the IRS, it phases out by roughly 6 cents for every dollar over the limit.
The deduction disappears completely around $175,000 for singles and $250,000 for joint filers.
That means higher-income seniors may get a partial deduction — or none at all.
How much could seniors actually save?
For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.
Seniors already get an extra bump. Single filers 65+ get about $2,050 more. Married couples get about $1,650 extra per spouse.
Now, add the new $6,000 bonus. A single senior could deduct up to $24,150 total. A married couple where both are 65+ could deduct up to $41,500.
That lowers taxable income significantly. It can also reduce how much of your Social Security gets taxed. Right now, up to 85% of Social Security benefits can be taxed for higher earners.
According to the Social Security Administration, this new rule is meant to help more seniors pay zero tax on their benefits.
How to claim the deduction
You report it on your 2025 federal tax return using Form 1040, which you’ll file in early 2026.
The IRS says no special form is required. You just need to meet the age and income rules and include your Social Security number.
Tax experts recommend double-checking your MAGI before filing. It includes wages, Social Security, pensions, and investment income — minus certain adjustments.
If you’re unsure, consult a tax preparer or use IRS resources at IRS.gov.
The deduction runs through 2028
This tax break is temporary. It applies only to tax years 2025, 2026, 2027, and 2028.
Congress would need to extend it beyond that. For now, seniors have four years to benefit — as long as they stay under the income caps.
Millions of retirees could save hundreds or even thousands of dollars. But only if they know the rules and file correctly.
