2025 Tax Season is a Little Brighter for Taxpayers 65+: The New Additional Senior Tax Deduction
If you are 65 or older on December 31, 2025, a new deduction could make a noticeable difference in your tax bill when you file your 2025 taxes.
OBBBA (One Big Beautiful Bill Act) created a new senior tax deduction designed to provide extra relief for taxpayers age 65 and older. This deduction will be available for tax years 2025 through 2028, offering meaningful savings for qualifying individuals and couples.
How Much Can You Deduct?
Single seniors (65+): Up to $6,000 annually.
Married seniors filing jointly (both 65+): Up to $12,000 annually.
How Do You Qualify?
You must be 65 years old on the last day of the tax year and
You must be filing as Single, Head of Household, or Married Filing Jointly and
Your modified adjusted gross income must be below certain amounts.
The Deduction Is Subject to Income Limitations
For single filers, phaseout starts at $75,000. The deduction is no longer available when income is $175,000 or more.
For married couples filing jointly, phaseout starts at $150,000. The deduction is no longer available when income is $250,000 or more.
If you qualify for the full OBBBA senior deduction and take the standard deduction on your tax return, here’s how the deductions stack up:
Base standard deduction (available to all taxpayers)
Additional senior standard deduction (already in place for 65+)
New OBBBA senior deduction (2025–2028 only)
One key distinction of the OBBBA senior deduction
The new senior deduction is available whether you take the standard deduction or itemize; However, most seniors will likely benefit more from the standard deduction unless they have unusually high medical expenses or other itemized deductions.
The New Deduction Helps Seniors Save Money
For seniors living on fixed incomes, every dollar counts. The additional senior deduction could potentially reduce your tax bill and help ease financial pressures during retirement. If you have questions about how this new deduction may affect you, reach out to your Aldridge Borden tax advisor for more information.