If you are age 65 or older, there is a new tax deduction that may help reduce your taxable income on your 2025 tax return (the return you file in 2026).
The IRS has announced that eligible seniors may be able to claim an additional $6,000 deduction per person. If you are married filing jointly and both spouses qualify, that could be as much as $12,000 total.
Who qualifies?
According to the IRS, to qualify for this deduction:
- You must be age 65 on or before the last day of the tax year
- The deduction is available whether you take the standard deduction or itemize
- If you are married, the IRS says you must file jointly to claim it
- You must include your Social Security number on the return
Income limits (phaseout rules)
This deduction is not available in full for higher-income taxpayers.
The IRS says the deduction begins to phase out when modified adjusted gross income (MAGI) is over:
- $75,000 (single)
- $150,000 (married filing jointly)
Is this the same as the regular age 65+ standard deduction?
No. This is an additional deduction.
The IRS specifically says this new senior deduction is in addition to the existing standard deduction rules for seniors. That means some taxpayers may qualify for both the regular age-based amount and this new deduction, depending on their situation.
Important timing
The IRS says this senior deduction is effective for tax years 2025 through 2028. It applies to the return you are filing now for 2025 income (if eligible).
- Lower taxable income
- Reduce overall federal tax owed
- Potentially improve cash flow during retirement tax planning
Why these matters
It may also affect whether it makes sense to itemize or take the standard deduction, so it’s a good year to review your return carefully before filing. (That’s especially true if you also have IRA distributions, pension income, investment income, or Social Security.)
Final tip
Before filing, make sure you have all your tax documents (SSA-1099, 1099-R, 1099-INT/DIV, brokerage statements, etc.).
We look forward discussing this new Deduction this tax season when we review your return.
