The One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) created a new standalone federal deduction of $6,000 per qualifying individual age 65 or older, effective for tax years 2025 through 2028. This is separate from — and stacks on top of — the existing additional standard deduction that 65-or-older taxpayers already receive. If both spouses in a married couple are 65 or older and file jointly, they can claim $12,000 total.
Key Facts
| Feature | Detail |
|---|---|
| Deduction amount | $6,000 per qualifying individual |
| Who qualifies | Taxpayers who are 65 or older by December 31, 2026 |
| Maximum (both spouses 65+, MFJ) | $12,000 |
| Available for MFS filers? | No |
| Where it is claimed | Schedule 1-A Part V |
| Effective tax years | 2025–2028 only |
| Phase-out rate | 6% of MAGI above $75,000 (single) / $150,000 (MFJ) |
| Fully phased out at MAGI (one person) | $175,000 single / $250,000 MFJ |
Sources: IRS IR-2026-28; IRS newsroom (Feb 27, 2026); P.L. 119-21 §70103.
The Phase-Out
The deduction is reduced — but not below zero — by 6% of MAGI above the threshold:
Reduction = 0.06 × (MAGI − threshold)
| MAGI (single) | Deduction (1 person) | Effective |
|---|---|---|
| $75,000 or below | $6,000 | Full |
| $80,000 | $6,000 − 0.06 × $5,000 = $5,700 | $5,700 |
| $100,000 | $6,000 − 0.06 × $25,000 = $4,500 | $4,500 |
| $125,000 | $6,000 − 0.06 × $50,000 = $3,000 | $3,000 |
| $150,000 | $6,000 − 0.06 × $75,000 = $1,500 | $1,500 |
| $175,000 | $6,000 − 0.06 × $100,000 = $0 | Phased out |
For a married couple where both spouses are 65+, the calculation is per person, so the combined deduction at $150,000 MAGI is $12,000 (the threshold is $150,000 for MFJ, and MAGI equals the threshold, so no phase-out yet).
Worked Example: Single, Age 68, $80,000 MAGI
- Base standard deduction: $16,100
- Additional standard deduction (age 65+, unmarried): $2,050
- Total standard deduction: $18,150
- Senior deduction: $6,000 − 0.06 × ($80,000 − $75,000) = $6,000 − $300 = $5,700
- Taxable income: $80,000 − $18,150 − $5,700 = $56,150
- Federal income tax:
- 10% × $12,400 = $1,240
- 12% × $38,000 = $4,560
- 22% × $5,750 = $1,265
- Total: $7,065
Compared to a 64-year-old at the same income (no senior deduction, base standard deduction $16,100):
- Taxable income: $80,000 − $16,100 = $63,900
- Tax: 10% × $12,400 + 12% × $38,000 + 22% × $13,500 = $1,240 + $4,560 + $2,970 = $8,770
The senior deduction ($5,700) saves: $8,770 − $7,065 = $1,705 in this example ($5,700 × ~22% marginal rate + the additional 65+ deduction effect).
Stacking With Other 2026 Deductions
The senior deduction stacks on top of:
- The base standard deduction ($16,100 single / $32,200 MFJ)
- The additional standard deduction for age 65+ ($2,050 unmarried / $1,650 married, per qualifying person)
- The tips and overtime deductions (if applicable)
A 65-year-old single filer who also qualifies for the full tips deduction ($25,000) and the full senior deduction ($6,000) at $65,000 MAGI would have taxable income of:
$65,000 − $16,100 − $2,050 − $6,000 − $25,000 = −$4,150 → floored at $0
Federal income tax in that scenario: $0 (before credits).
Practical Notes
Because the senior deduction is claimed at filing (on Schedule 1-A), your employer’s withholding throughout the year does not automatically account for it. To avoid over-withholding, enter the expected deduction on your W-4’s Deductions Worksheet (Step 4b). For a complete estimate, use the federal income tax calculator.
If your income is near the phase-out thresholds, consider consulting a tax professional — especially if you have multiple income sources (Social Security, IRA distributions, capital gains) that can interact with MAGI.