The deduction, created under OBBBA Sec. 70108, applies to tax years 2025 through 2028. To claim it, you must be 65 or older by the end of the tax year. The deduction is available whether you take the standard deduction or itemize, which makes it more widely accessible to qualifying seniors.
For single filers, the maximum deduction is $6,000. Married couples filing jointly can claim $12,000 if both spouses are 65 or older. If only one spouse qualifies, the maximum deduction is $6,000.
The full deduction is available if your modified adjusted gross income (MAGI) is below $75,000 for single filers or $150,000 for married couples filing jointly. Above those amounts, the deduction begins to phase out and is completely eliminated once MAGI reaches $175,000 for single filers or $250,000 for joint filers.
This structure means many middle-income seniors stand to benefit, but those with higher incomes will need to plan carefully to see whether they qualify.
Because eligibility depends on income, year-to-year planning is critical. A few common situations can unexpectedly push income above the limits:
Roth conversions are particularly important to consider. The entire converted amount is taxable in the year of the conversion, which can increase MAGI enough to reduce or eliminate the new deduction. For some taxpayers, spreading a conversion across several years or carefully reviewing timing makes more sense.
The senior deduction is one of several provisions in the OBBBA designed to provide relief to households and retirees. Other changes include an expanded SALT deduction, a new deduction for tips, and additional support for overtime pay. Together, these updates create new opportunities for savings, but also new layers of complexity when planning.
A CPA can help you coordinate across all these provisions, ensuring that one decision doesn't unintentionally cancel out another benefit.
Is this deduction available to everyone?
No. It is only for taxpayers who are 65 or older by the end of the tax year.
Does it replace the standard deduction?
No. It is an additional deduction available on top of the standard deduction if you qualify.
How long does the deduction last?
It applies to tax years 2025 through 2028. Unless extended by Congress, it will expire in 2029.
What if only one spouse is 65?
Married couples filing jointly can claim $6,000 if one spouse is 65 or older. They may claim $12,000 if both spouses qualify.
Tax laws change often, but the OBBBA introduced some of the most significant updates in recent years. For seniors, the new deduction creates opportunities to reduce taxable income, but strategic tax planning is needed to avoid income phaseouts.
At Myrick CPA, we help clients in Washington, D.C. and across the country make sense of these rules. Through secure digital systems and Zoom consultations, we work with you to project income, weigh retirement account moves, and ensure you qualify for every deduction available.
If you want clarity on how the OBBBA affects your retirement taxes, schedule a consultation before the end of the year. The right plan can help you turn new tax rules into real savings.