Starting with the 2025 tax year, Americans aged 65 and older can claim a new $6,000 bonus deduction on their federal taxes — on top of the existing standard deduction. Couples filing jointly may deduct up to $12,000. The deduction phases out for individuals earning over $75,000 in modified adjusted gross income and disappears entirely at $175,000. The provision is set to expire after 2028 unless Congress acts to renew it. For many seniors with Social Security income, the new deduction could significantly reduce or even eliminate their federal tax liability.

The new deduction is in addition to the existing extra standard deduction for people age 65-plus.

Source: AARP →