If you’re 65 or older by December 31, 2025, there’s finally good news in the tax code. A brand-new senior tax deduction can lower your bill by $6,000 per person (or $12,000 for couples filing jointly), on top of your standard deduction and age-based additional amount (IRS – One Big Beautiful Bill Act).
Pair that with the IRS 2025 standard deduction adjustments—$15,000 for single filers, $30,000 for married filing jointly, and $22,500 for heads of household—and you’re shielding a substantial chunk of income from federal tax.
What senior tax deduction, really?
It’s a bonus deduction for individuals age 65+, available even if you don’t itemize.
- Single filer 65 or older: +$6,000
- Married couple where both are 65+: +$12,000
This benefit is effective from 2025 through 2028 (IRS senior deduction guidance).
Why this matters: If you’re living on fixed income—such as Social Security, pensions, or retirement withdrawals—every untaxed dollar helps with medications, groceries, or family visits, without extra paperwork.
Who actually gets it—and who doesn’t
Eligibility phases out based on Modified Adjusted Gross Income (MAGI):
- Singles: starts at $75,000 MAGI, gone by $175,000
- Married filing jointly: starts at $150,000, gone by $250,000
If your income sits close to those thresholds, timing matters. Even one large Roth conversion or asset sale can disqualify you.
Practical ways to keep the deduction
Spread out capital gains
Selling investments or property? Spread sales across years to stay under phase-out levels. See examples in our IRSProb Blog.
Pace Roth conversions
Roth conversions add taxable income. A lump-sum conversion may push you over. Consider smaller annual conversions with help from our tax relief services.
Max out retirement contributions
Even at 65+, contributions to 401(k)s or IRAs can lower income. Review IRS contribution limits for 2025.
Time small business expenses
If you’re self-employed, shifting expenses like equipment purchases can reduce MAGI. We’ve paired this with penalty abatement strategies for many business owners.
A quick story: John & Mary
John and Mary, both 67, file jointly with a MAGI of $140,000. With the senior deduction plus the standard deduction, they shelter nearly $46,000 from taxation.
If they sold $120,000 in stock gains this year, they’d exceed the $250,000 threshold and lose the deduction. By staggering sales over three years, they preserve the break and save thousands.
Explore more real-world cases in here: client success stories.
Where IRSProb.com fits in
At IRSProb.com, we help seniors and families keep more of what they’ve earned:
- Setting up installment agreements or offers in compromise
- Stopping levies and wage garnishments before they spiral
- Explaining IRS notices clearly—see our guide on understanding IRS letters
Prefer to talk it through? Contact us. Call 214-214-3000.
FAQ
Quick Summary
Deduction: $6,000 (single, 65+), $12,000 (joint, both 65+)
Phase-outs: start at $75k MAGI (single) / $150k (joint); end at $175k / $250k
2025 Standard Deduction: $15k (single), $30k (joint), $22.5k (HoH)
Tips: spread gains, slow Roth conversions, use retirement contributions, and plan business expenses
