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Explaining the 2025 Senior Bonus Tax Deduction: How much is cash senior bonus?

Effective for the 2025 tax year, a new federal tax deduction allows eligible seniors to claim up to an additional $6,000, or $12,000 for qualifying couples. This benefit, informally known as a “cash senior bonus,” is in fact a deduction that reduces taxable income, not a direct cash payment. This article explains how this deduction works, who qualifies, and how it compares to actual government cash benefits.