Don’t Miss Out on Claiming the 'Senior Deduction' on Your Taxes This Year

New Tax Break for Seniors in 2025

Seniors have a fresh opportunity to reduce their tax liability this year thanks to a recently introduced deduction.

Main Points

• Under the legislation known as the ‘One Big Beautiful Bill,’ individuals aged 65 and older can now deduct between $6,000 and $12,000 from their taxable income for 2025, which can significantly decrease their taxes owed.
• Eligibility requires taxpayers to be at least 65 years old. Single filers must have an income below $175,000, while married couples qualify if their combined income is under $250,000.

This new deduction could help seniors pay less in taxes this year. Here’s a breakdown of how it works and who qualifies.

The One Big Beautiful Bill, which became law in July 2025, introduced a special deduction for those 65 and older. Also referred to as a Social Security tax break by the Trump administration, this benefit applies retroactively for the entire 2025 tax year. Seniors can claim it when filing their upcoming tax returns.

Individuals who qualify can subtract $6,000 from their taxable income for 2025, while eligible married couples can deduct $12,000. This is in addition to the standard deduction available to all non-itemizing taxpayers, as well as the existing extra standard deduction for seniors, which allows single filers to deduct $2,000 and married couples to deduct $1,600.

Why This Deduction Is Important

Many older Americans live on a fixed income, relying on Social Security and retirement savings. Reducing taxable income for seniors can free up more funds for everyday expenses and discretionary spending.

How to Claim the Deduction

Certain online tax preparation tools will automatically apply this new deduction for eligible seniors. If you’re filing a paper return, simply check the box on Form 1040 or Form 1040-SR indicating you are 65 or older. The IRS will then apply the deduction if you meet the requirements.

Eligibility Criteria

• The deduction starts to phase out for those with a modified adjusted gross income above $75,000 (or $150,000 for married couples filing jointly). It is not available for single filers earning more than $175,000 or couples earning over $250,000.
• You must have turned 65 at some point during 2025.
• Both itemizing and non-itemizing taxpayers can take advantage of this deduction.
• A valid Social Security number is required.
• Married couples must file jointly to qualify for the deduction.