According to President Donald Trump’s “Big and Beautiful Bill” (OBBBA), American taxpayers aged 65 and older will receive an additional tax deduction of $6,000 starting next year. This deduction will first apply to the 2025 tax year, with filings due in 2026.
Eligible seniors must reach the age of 65 by the last day of the tax year. All qualifying seniors can apply for the deduction, regardless of whether they choose the standard deduction or itemized deductions.
Seniors with individual incomes below $75,000 or married couples filing jointly with incomes below $150,000 can enjoy a $6,000 tax deduction.
For high-income seniors, the deduction amount will gradually decrease; for single filers with adjusted gross incomes (MAGI) exceeding $175,000 and joint filers with MAGIs over $250,000, the deduction will be completely phased out.
This temporary tax relief will continue through the 2028 tax year.
The temporary deduction amount will be adjusted annually for inflation in line with the additional standard deduction for seniors, thereby increasing overall tax relief for elderly Americans.
This additional subsidy will be added on top of the existing additional standard deduction for seniors, which the Internal Revenue Service (IRS) has increased based on annual inflation adjustments.
In 2026, the additional standard deduction for seniors will rise to $2,050 for single filers and $1,650 per person for married couples filing jointly.
These special deductions for seniors are supplements to the standard deduction for all taxpayers, and the IRS has also raised the standard deduction amount for the 2026 tax year to account for inflation.
In a blog post, online tax platform eTax stated: “While the annual inflation adjustments may not be substantial, they help protect fixed-income seniors from increased tax burdens resulting from inflation, saving a significant amount of money for retirees with moderate incomes.”
(Partial reference from reporting by “News Weekly”)