Tax Benefits for Older Adults
Taxpayers aged 65 and older may be eligible for two types of extra tax deductions. One is a long-standing increase to the standard deduction for those who don't itemize, and the other is a new, temporary bonus deduction introduced by recent legislation [1]. Understanding both can help maximize tax savings.
The Traditional Additional Standard Deduction
The IRS provides an additional standard deduction for taxpayers who are 65 or older and choose not to itemize. This amount varies by filing status and is adjusted annually for inflation [2]. For 2025:
- Single or Head of Household: An additional $2,000.
- Married Filing Jointly: An additional $1,600 per qualifying spouse (up to $3,200 if both are 65+).
- Married Filing Separately: An additional $1,600 per qualifying spouse [2].
This benefit is integrated into the tax code and applies only when taking the standard deduction [2].
The New OBBBA Bonus Deduction (2025-2028)
The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, created a new, separate deduction for seniors 65 and older [1, 3]. Available from 2025 through 2028, this bonus can be claimed even by those who itemize, a key distinction from the traditional additional standard deduction [1, 3].
Key Details of the OBBBA Deduction
- Amount: Up to $6,000 per eligible individual, or $12,000 for a married couple where both are 65 or older [1, 3].
- Eligibility: Must be 65 or older with a valid Social Security number and Modified Adjusted Gross Income (MAGI) below certain thresholds [1].
- Claiming: This deduction is added to either your standard or itemized deductions, potentially lowering your taxable income [1].
Income Phase-Out
The bonus deduction is subject to MAGI limits and is reduced for higher earners. The deduction decreases by six cents for every dollar your MAGI exceeds the threshold [1, 3].
- Single Filers and Heads of Household: Phase-out starts at $75,000 MAGI and ends at $175,000 [1, 3].
- Married Filing Jointly: Phase-out starts at $150,000 MAGI and ends at $250,000 [1, 3].
Comparison of Deductions for Seniors (2025 Tax Year)
Here's a comparison of the two extra deductions available to seniors in 2025:
| Feature | Traditional Additional Standard Deduction | New OBBBA Bonus Deduction (2025-2028) |
|---|---|---|
| Availability | All filers 65+ taking the standard deduction | Eligible filers 65+ with income below thresholds [1, 2] |
| Claim Method | Added to the standard deduction total [2] | Can be claimed whether standard or itemized [1, 3] |
| Amount (Single) | $2,000 (2025) [2] | Up to $6,000 (2025) [1, 3] |
| Amount (Married) | $1,600 per eligible spouse (2025) [2] | Up to $12,000 if both are 65+ (2025) [1, 3] |
| Income Limit | None [2] | Yes, phases out for higher incomes [1, 3] |
| End Date | Permanent tax code provision [2] | Expires after the 2028 tax year [1, 3] |
Claiming Your Extra Deductions
For the traditional age-based standard deduction, check the age box on Form 1040 or Form 1040-SR [2]. Tax software typically handles this automatically [2]. To claim the OBBBA bonus deduction, report it on your tax return as a separate deduction. Review IRS instructions or use tax software for accurate filing, especially within the income phase-out range [1]. Comparing potential tax liability with standard versus itemized deductions plus the bonus is recommended [1].
For further official details, consult IRS Publication 554, Tax Guide for Seniors [2].
Conclusion: Navigating Senior Tax Benefits
The extra tax deductions for seniors over 65, including the temporary OBBBA bonus, offer valuable tax relief. By understanding the eligibility, income limits, and how these permanent and temporary benefits work, seniors can ensure they claim all applicable deductions [1, 2, 3]. Consulting a tax professional or using reliable tax software is advisable to accurately claim these benefits through 2028 [1, 2, 3].
