The recently enacted One Big Beautiful Bill Act (OBBBA) brings a welcome change for seniors when it comes to their taxes. Beginning with the 2025 tax year, individuals age 65 and older will be able to take advantage of a new, additional deduction designed to provide extra tax relief.
How Much Is the Deduction and Who Qualifies?
Under the OBBBA, seniors can claim an extra $6,000 deduction on top of the standard deduction and the usual age-based add-on. For married couples filing jointly, if both spouses are 65 or older, the total extra deduction can be as much as $12,000. This new benefit is available for tax years 2025 through 2028.
To qualify, you or your spouse must be 65 or older by the end of the year. If you are married, you must file a joint return to claim the deduction for both spouses. The IRS will require Social Security numbers for everyone for whom the deduction is claimed.
Income Limits and Phase-Out
There are income limits to keep in mind. The full deduction is available if your income is $75,000 or less for single filers, or $150,000 or less for married couples filing jointly. If your income is above these thresholds, the deduction is gradually reduced and eventually phased out at higher income levels.
Why This Matters for Seniors
This new deduction is in addition to the standard deduction and the existing extra amount for seniors, making it a significant opportunity to lower your tax bill if you are on a fixed or moderate income. If you or your spouse will be 65 or older in 2025, be sure to let your tax preparer know so you can take full advantage of this new benefit.
Important: These are all new changes, and further guidance from the IRS and Treasury Department is expected. The details may change as new regulations and clarifications are issued. Be sure to consult with your tax advisor to understand how these changes affect your specific situation.
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