One Big Beautiful Bill and You: New Senior Tax Deduction for 2025

The One Big Beautiful Bill brought a few updates to the tax rules, and some of these changes take effect in 2025. To help you stay informed without feeling overwhelmed, we’ll break down one key update each month. This month, we’re highlighting the new Senior Tax Deduction.

New $6,000 Senior Tax Deduction (2025)

If you are 65 or older, you may qualify for a new $6,000 deduction—on top of the standard deduction and the existing senior deduction.

Married filing jointly?

If both spouses are 65 or older, each can claim the $6,000 deduction, for a total of $12,000.

Income limits:

• Single/Head of Household: Full deduction if modified adjusted gross income (MAGI) is under $75,000

• Married filing jointly: Full deduction if MAGI is under $150,000

The deduction phases out for incomes above these thresholds and is completely unavailable at:

• Single/Head of Household: $175,000

• Married filing jointly: $250,000

Note: This additional deduction is not available for those filing separately.

What This Means for Total Deductions

With the new deduction, eligible seniors could see a significant boost to their total deductions:

• Single filers over 65 with income under $75,000 can claim up to $23,750 in deductions.

• Married couples (both over 65) with income under $150,000 can claim up to $46,700.

This total includes the standard deduction, the existing senior deduction, and the new $6,000 senior deduction potentially lowering your taxable income and helping you keep more of your hard-earned money.