Effective for tax years 2025-2028, taxpayers age 65 or older may be eligible to claim an additional deduction of up to $6,000. Seniors who qualify can claim the deduction regardless of whether they itemize or take the standard deduction.
What are the qualifications for the senior deduction?
To qualify, the taxpayer must be 65 or older by the December 31st of the tax year and if married, you must file jointly. Married filing separate filers do not qualify for the deduction.
How much is the deduction?
The deduction can be claimed for up to $6,000. However, the deduction begins to phase out for single taxpayers with a modified AGI of over $75,000 and over $150,000 for joint filers.
How do I claim the deduction?
You do not need to take any specific action to claim the deduction. If you are eligible, our software will automatically calculate and apply the senior deduction.
How can I confirm that I'm getting the Senior Deduction?
Select Review > Summary from the menu on the left from within your account. Once your summary is done loading, click the dropdown arrow next to Tax and Credits, and you should see a listing for "Enhanced deduction for seniors."
What Is the One Big Beautiful Bill Act?
Signed into law on July 4, 2025, the One Big Beautiful Bill Act (OBBBA) is a sweeping tax and spending package that’s being called the biggest shake-up since the 2017 Tax Cuts and Jobs Act. It’s packed with reforms aimed at helping working Americans, retirees, and small businesses. But one of the standout features? A brand-new tax break for seniors.
What’s New for Seniors in 2025?
Starting with the 2025 tax year, individuals aged 65 and older can claim an additional $6,000 deduction on top of the standard deduction they already get. This is a big deal—especially for retirees living on fixed incomes or those still working part-time.
How Does the $6,000 Deduction Work?
Think of it as a bonus deduction. If you’re 65 or older, you already qualify for an extra standard deduction under existing law. Now, thanks to the OBBBA, you get another $6,000 layered on top of that.
Who Qualifies?
To claim the new senior deduction, you must:
- Be age 65 or older by the end of the tax year (December 31, 2025)
- File as single, married filing jointly, head of household, or qualifying widow(er)
How It Stacks with Other Deductions
This new deduction is in addition to:
- The regular standard deduction
- The existing age-based deduction
- Any itemized deductions (if you choose to itemize instead)
So if you’re still working or have retirement income, this could significantly lower your taxable income—and potentially bump you into a lower tax bracket.
Why This Matters for Your Tax Return
For seniors, every dollar saved matters. Whether you’re living off Social Security, a pension, or part-time work, this deduction could mean:
- A larger refund
- Lower monthly withholding
- Or simply less tax owed
A Few Things to Watch Out For
- The deduction is temporary—it’s only guaranteed from 2025 through 2028.
- If you turn 65 during the year, you still qualify.