If you’re 65 or older, there’s a new tax benefit you need to know about—and it could save you thousands of dollars on your 2025 tax return.
The “One Big Beautiful Bill Act,” signed into law in July 2025, created an additional $6,000 deduction for seniors. This isn’t a replacement for anything you’re already getting—it’s a brand new deduction that stacks on top of your existing tax benefits.
Understanding the New Senior Deduction
Here’s what makes this deduction special: it’s available whether you itemize or take the standard deduction, and it’s in addition to the existing extra standard deduction that seniors already receive.
For 2025, a single taxpayer age 65 or older can now claim a total standard deduction of up to $23,750 (that’s the regular $15,750 standard deduction, plus the existing $2,000 senior addition, plus the new $6,000). A married couple where both spouses are 65 or older can claim up to $46,700.
Who Qualifies?
To claim this deduction, you must be 65 or older by December 31, 2025. The deduction is available per eligible individual, so if both spouses qualify, you can claim the full $12,000 combined amount.
There’s an income cap to be aware of. The deduction begins to phase out for taxpayers with modified adjusted gross income (MAGI) over $75,000 for single filers or $150,000 for married couples filing jointly. It phases out completely at $175,000 for individuals and $250,000 for joint filers.
One important note: this deduction is not available to married couples filing separately.
The Power of Stacking Deductions
What makes this particularly valuable is that it works regardless of whether you itemize. If you have significant medical expenses, charitable contributions, or state and local taxes that push you into itemizing territory, you can still claim this $6,000 deduction on top of your itemized deductions.
For example, a 67-year-old single filer with $35,000 in itemized deductions and income under $75,000 could deduct a total of $41,000 from their taxable income ($35,000 itemized + $6,000 new senior deduction).
Important Timing: Available Through 2028
This deduction is temporary. It’s available for tax years 2025 through 2028, after which it’s currently set to expire. That makes planning ahead even more critical if you’re approaching retirement or making decisions about income timing.
What This Means for Your Tax Planning
This new deduction changes the landscape for seniors navigating tax planning decisions. It may affect when you take retirement account distributions, how you structure investment income, or whether Roth conversions make sense for your situation.
At Lightening the Load, we’re helping clients understand exactly how this new deduction impacts their unique tax situation. We’ll calculate your eligibility, determine the phase-out impact if your income exceeds the thresholds, and help you make strategic decisions to maximize this benefit while it’s available.
Whether you’ve been filing your own returns for years or working with another preparer, now is the time to have a conversation about how this substantial new deduction fits into your overall tax strategy.
Let us lighten your load.
