Senior Bonus Deduction: How the New $6,000 Break Works With Existing 65+ Deductions (2025–2028)

Overview: What is the Senior Bonus Deduction?

The One Big Beautiful Bill (OBBB) introduces a temporary tax benefit called the Senior Bonus Deduction. Beginning in 2025, eligible taxpayers who are age 65 or older can claim an extra $6,000 deduction per person. This deduction reduces taxable income, which may lower federal income tax for many retirees and near-retirees.

The Senior Bonus Deduction is available only for tax years 2025, 2026, 2027, and 2028. After 2028, the provision is scheduled to sunset unless extended by Congress.

Important: This new deduction does not replace any existing senior tax benefits. Instead, it adds to them.

The Senior Bonus Deduction added by OBBB (2025–2028)

Who qualifies?

To qualify for the Senior Bonus Deduction, you must:

• Be 65 or older by December 31 of the tax year, and
• Meet the income requirements described below.

How much is the deduction?

• $6,000 per eligible taxpayer
• Up to $12,000 on a joint return if both spouses are 65+

Can you claim it if you itemize?

Yes. The Senior Bonus Deduction is available whether you take the standard deduction or itemize. This makes it valuable for seniors who itemize due to:

• mortgage interest
• charitable contributions
• state and local taxes
• medical expenses (subject to limits)

Income phaseout (MAGI limits)

The full $6,000 deduction is available until MAGI reaches:

• $75,000 for single filers
• $150,000 for married filing jointly

Above those thresholds, the deduction phases out at roughly 6% of MAGI over the limit and ends entirely around:

• $175,000 MAGI (single)
• $250,000 MAGI (joint)

In practical terms, the Senior Bonus Deduction is aimed primarily at low- and middle-income seniors, with partial benefits for higher-income households until the phaseout range is reached.

The existing benefit: additional standard deduction for age 65+

Even before OBBB, the tax code provided an additional standard deduction for taxpayers who are age 65+ and/or blind. This benefit continues under OBBB.

2025 additional standard deduction amounts

• $2,000 for single filers or heads of household age 65+
• $1,600 per qualifying spouse for married filing jointly or separately
• A joint return may add $3,200 total if both spouses are 65+.

How this existing deduction works

• Only applies if you take the standard deduction.
• If you itemize, you do not receive this add-on.
• Inflation-indexed.
• The IRS typically adjusts these amounts annually, so they may rise slightly in 2026–2028.

How the two deductions combine

OBBB makes clear that the Senior Bonus Deduction is in addition to the existing 65+ additional standard deduction.

Eligible seniors may receive:

1. Standard deduction (or itemized deductions), plus
2. Existing additional standard deduction for age 65+ (only if using the standard deduction), plus
3. Senior Bonus Deduction of $6,000 per person (standard or itemized).

What this means in practice

• Standard-deduction seniors get the largest combined benefit.
  They may claim both senior-related deductions together.
• Itemizing seniors still benefit from the new bonus.
  They won’t receive the older standard-only add-on, but they can still claim the $6,000 bonus.

Why this matters for retirement tax planning

Many retirees have income from multiple sources, including:

• Social Security
• Pensions
• Investment income
• Required minimum distributions (RMDs)
• IRA or 401(k) withdrawals

Because the Senior Bonus Deduction lowers taxable income, it may:

• Reduce total federal tax owed; and
• Potentially reduce the amount of Social Security benefits subject to tax under current rules.

Note: OBBB does not eliminate taxation of Social Security benefits. The Senior Bonus Deduction is the bill’s main broad-based senior tax benefit.

Because the bonus is temporary, timing matters. Seniors close to the MAGI thresholds may benefit from:

• Spreading Roth conversions over multiple years
• Managing capital gains realization
• Coordinating IRA withdrawals to avoid phaseout
• Reviewing withholding and estimated payments beginning in 2025

Bottom line

The Senior Bonus Deduction is a temporary $6,000 per-person deduction for taxpayers age 65+ from 2025 through 2028. It supplements, not replace, the existing additional standard deduction for seniors. For standard-deduction filers, the combined impact could be significant, and even itemizers can benefit from the bonus.

If you’d like help estimating how much this deduction could save you, or aligning retirement income to maximize the benefit during the four-year window, connect with UHY’s Tax Practice through the form on this page.