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Starting in 2025, Americans of age 65 and older will see a new line on their tax returns and it can save them thousands of dollars. A recently passed provision allows seniors to claim an additional $6,000 deduction per person, on top of the standard and age-based deductions they already receive. The change, in effect through 2028, is designed to ease the financial burden on older taxpayers who often live on fixed incomes.

Unlike many tax breaks that are tied to itemizing, this new deduction is available to both itemizers and standard deduction filers, making it broadly accessible. For married couples where both partners are of age 65 or older, the benefit doubles to $12,000.

Here’s Who Qualifies & How Much You Can Claim

To qualify, you must be 65 or older by the end of the tax year and not file as Married Filing Separately. However, the deduction begins to phase out for individuals with a Modified Adjusted Gross Income of above $75,000.

For those within the income limits, this new deduction stacks on top of existing ones. For instance, in 2025, a single filer aged 65 or older can claim:

1. The standard deduction of $15,750

2. The existing age-based addition of $2,000

3. Plus the new senior deduction of $6,000

That brings the total deduction to $23,750. Similarly, a married couple, where both spouses are of age 65 or older, can deduct up to $46,700.

How This Can Influence Social Security Taxes

The new deduction can do more than just lower taxable income; it may also reduce how much of your Social Security benefits are taxed. Social Security taxation is dependent on the combined income of a person, which includes adjusted gross income, non-taxable interest and half of the Social Security benefits.

Currently, up to 50% of your benefits can be taxed if your combined income is between $25,000 and $34,000 for individuals or $32,000 and $44,000 for couples. The tax rate can rise to 85% if your income exceeds those limits. By lowering your taxable income through the new deduction, you may stay under those thresholds — or at least reduce the portion of benefits that gets taxed.

Other Tax Rules Seniors Should Know

Seniors also benefit from slightly higher income thresholds before they are required to file a return.

The IRS also makes the process easier through Form 1040-SR, a version of the standard 1040 form with larger print and a simpler layout. Seniors can also access free help through the Tax Counseling for the Elderly and Volunteer Income Tax Assistance programs, which offer tax preparation and filing guidance.

Don’t Overlook Medical & Charitable Deductions

Those who itemize can still take advantage of medical expense deductions for out-of-pocket healthcare costs that exceed 7.5% of their adjusted gross income. These can include prescriptions, insurance premiums, mental health care and even in-home care services.

Another opportunity lies in Qualified Charitable Distributions. If you are 70 and a half or older, you can transfer up to $100,000 directly from your IRA to a qualifying charity tax-free. This can also count toward your Required Minimum Distribution, which now starts at age 73 for most retirees. It is a smart move to reduce taxable income while supporting causes you care about.

Don’t Forget State-Level Benefits

In addition to federal tax breaks, many states and local governments offer property tax relief programs for older adults, including credits, exemptions or tax freezes. These can provide substantial savings, especially for retirees living on fixed incomes.

Bottom Line

The new $6,000 senior deduction is more than just a one-time tax perk; it is a meaningful way to help retirees stretch their income further while costs of living continue to climb. By combining it with other deductions and credits, older taxpayers can make a real dent in their federal tax bill.

With a little planning, seniors can use these new rules not just to file smarter, but also to keep more of their hard-earned retirement income in their pockets.