The One Big Beautiful Bill Act added a new, temporary deduction for taxpayers age 65 and older — up to $6,000 for single filers and $12,000 for married couples filing jointly, available for tax years 2025 through 2028. If you are retired or near retirement, this can meaningfully reduce the portion of your income that is taxable.
Short answer: seniors 65+ can deduct up to $6,000 (single) or $12,000 (joint) from income for 2025–2028, but the deduction phases out at 6% of modified AGI above $75,000 (single) or $150,000 (joint). It disappears entirely at $175,000 single / $350,000 joint.
How the senior deduction works
The deduction is an above-the-line adjustment — you claim it regardless of whether you itemize. It is separate from (and on top of) the standard deduction, and it reduces taxable income dollar-for-dollar at whatever your marginal rate is. Think of it as a targeted supplement for older taxpayers, layered on top of the extra standard deduction seniors already get for being 65+.
2026 senior deduction limits
| Filing status | Deduction | Phase-out starts (MAGI) | Fully phased out |
|---|---|---|---|
| Single | $6,000 | $75,000 | $175,000 |
| Married filing jointly | $12,000 | $150,000 | $350,000 |
The phase-out is mechanical: for every dollar of modified AGI above the threshold, the deduction shrinks by 6 cents, until it reaches zero. This is a generous window — a single retiree with $100,000 of MAGI still gets $4,500 of the deduction.
Who benefits most
The deduction is most valuable to seniors with moderate retirement income — pensions, taxable 401(k)/IRA withdrawals, rental income, or partially taxable Social Security. Higher-income seniors phase out entirely, and the provision sunsets after 2028 unless extended. Because the deduction reduces taxable income at your marginal rate, it is worth roughly $1,320–$1,440 in tax savings for a single filer in the 22–24% brackets.
Where to see it in your own numbers
Model your full 2026 picture with the federal income tax estimator, which applies the current standard deduction and brackets. For estate and gifting questions that often accompany retirement planning, see the estate tax calculator and the gift tax calculator.
Disclaimer: This article is general educational information, not tax, legal, or investment advice. Dollar amounts come from the 2026 sources listed at the end of this article and may change. Before you act, talk to a licensed CPA, EA, or tax attorney about your own situation.