The recent enactment of the One Big Beautiful Bill Act has made one notable change for senior taxpayers. The new proposals provide seniors with a golden opportunity! They can now claim an additional standard deduction as high as $6,000 more, stacking it on top of the standard deduction and exemptions for seniors and visually impaired persons.
The new city deduction would be particularly valuable to senior citizens aged 65 and older, providing them more substantial financial relief. They provide for an additional $2,000 per person in standard deductions for individual filers and $3,200 for joint filers. Under these new rules, an individual filer can deduct up to $6,000. Joint filers get an aggregate deduction of $12,000.
To be eligible for this new deduction, people need to be 65 on or before December 31, 2025. Eligible filers are individuals, heads of household, surviving spouses, or married couples filing jointly. This expanded deduction will allow more senior citizens to combat their financial burdens. Free public transit It’s one of the most important provisions in our One Big Beautiful Bill Act.
Although the added deduction aims to give monetary support, it has a number of income limits. For joint filers, the deduction will start to be phased out once their modified adjusted gross income (MAGI) is over $150,000. The deduction fully phases out as an individual’s MAGI reaches $175,000. For those filing a joint return, the combined MAGI can’t exceed $250,000 to be eligible for the full deduction.
The single filer standard deduction in tax year 2025 is indexed for inflation to $15,750. For married couples filing jointly, it jumps up to $31,500. This new senior deduction will be available until it sunsets automatically in tax year 2028.