Senior Bonus Deduction: How the New $6,000 Break Works With Existing 65+ Deductions

“One Big Beautiful Bill” (OBBB) introduces a temporary new Senior Bonus Deduction of up to $6,000 per eligible taxpayer age 65 or older, available for tax years 2025 through 2028. This deduction is designed to provide additional tax relief for retirees and near-retirees, and it builds upon the existing long-standing standard deduction for seniors under current law. Understanding how these two benefits interact is key to planning effectively over the next four years.

The Senior Bonus Deduction added by OBBB

Starting in 2025, taxpayers who are 65 or older by year-end may claim an extra $6,000 deduction per person. Married couples filing jointly may claim $12,000 total if both spouses qualify.

• Available whether you itemize or take the standard deduction. This is important because it makes the bonus broadly accessible, even for taxpayers who itemize due to mortgage interest, charitable giving, or other deductions.
• Temporary window. The deduction applies only for 2025–2028, so the opportunity is time-bound.
• Income phaseout. The full bonus is available until modified adjusted gross income (MAGI) reaches $75,000 (single) or $150,000 (joint). Above those thresholds, the deduction phases out at about 6% of MAGI over the limit, disappearing entirely around $175,000 single / $250,000 joint.

The existing benefit: the additional standard deduction for age 65+

Before OBBB, the tax code already provided an extra standard deduction amount for taxpayers who are 65+ and/or blind. That rule remains in place.

For 2025, the additional standard deduction amounts are:

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

Important distinction:

• This existing additional standard deduction only applies if you take the standard deduction. If you itemize, you don’t get this add-on.
• The amount is inflation-indexed, so it may rise slightly each year (for example, IRS guidance for 2026 shows a small increase).

Combining the two deductions

OBBB explicitly states that the new $6,000 Senior Bonus Deduction is in addition to the current additional standard deduction for seniors.

That means eligible seniors may receive:

• Regular standard deduction (or itemized deductions), plus
• Existing additional standard deduction for 65+ (only if using standard deduction), plus
• New Senior Bonus Deduction of $6,000 per person (standard or itemized).

So in practice:

• Standard-deduction seniors get the biggest stacking effect. They benefit from both senior-related additions.
• Itemizing seniors still gain meaningful relief via the new bonus, even though they don’t qualify for the older standard-only add-on.

Why this matters for retirement tax planning

For many retirees, taxable income is driven by a combination of Social Security, pensions, investment income, and required minimum distributions (RMDs). Reducing taxable income through stacked deductions may:

• Lower federal tax owed; and
• Potentially reduce how much of Social Security becomes taxable under existing rules (even though OBBB does not eliminate Social Security taxation).

Because the Senior Bonus is temporary, there may be planning opportunities around income timing—especially for taxpayers near the MAGI thresholds.

Bottom line

OBBB’s Senior Bonus Deduction adds a temporary $6,000 per-person tax break for taxpayers age 65+ from 2025–2028, and it does not replace the existing 65+ additional standard deduction, it supplements it. Seniors who take the standard deduction may see especially strong combined value, while itemizers still benefit from the bonus on its own.

If you’d like help modeling your expected benefit or coordinating retirement income to maximize deductions during the four-year window, fill out the form on this page to connect with our Tax Practice.