New Senior Deduction Explained

For the 2025 tax year, seniors, age 65 and older, can take advantage of a new $6,000 tax deduction.

The new deduction will be available through 2028.

Eligibility rules

Taxpayers who are age 65 or older by the end of the tax year and have a modified adjusted gross income that is less than $75,000 may claim the full $6,000 deduction if MAGI exceeds $75,000, a partial deduction is still available. Married taxpayers age 65 or older, who file a joint tax return, can both claim the deduction for a total of $12,000. The deduction for joint filers begins to phase out at $150,000 of modified adjusted gross income.

Filing Status	Full deduction available if MAGI below:	Deduction fully phased out once MAGI exceeds:
Married Filing Jointly	$150,000	$250,000
All Other Filing Statuses	$75,000	$175,000

Claiming the deduction

This new deduction is in addition to the standard deduction. For 2025, the standard deduction amount is $15,750 for a single individual and $31,500 for married couples filing jointly. Plus, there is an additional $2,000 increase to the standard deduction for individuals age 65 and older($1,600 for each individual if married filing jointly). The total, potential, standard deduction for taxpayers age 65 and older is now $23,750 ($6,000 + $15,750 + $2,000) for single filers and $46,700 ($12,000 + $31,500 + $3,200) for joint returns.

Social Security impact

This new deduction reduces taxable income but it does not mean social security income won't be taxed. Social security income may still be taxable for most recipients. However, the new deduction may help keep a taxpayer below the thresholds that result in social security income being taxed to the fullest extent.

To learn more about the new senior deduction and how it can help reduce your tax bill, contact MNM Vested, LLC.