Disclaimer: Do not make tax planning or preparation decisions based on just this article. This article is for informational purposes only. The tax code and any guidance the IRS provides should be relied on for tax preparation and planning, as well as a competent tax professional who you have engaged for services. The tax code can and will change and as of July 9, 2025 the IRS has not yet published guidance or procedures for this deduction. This article does not cover all the details of this topic.

Starting in tax year 2025 there is a new senior citizen deduction. This deduction is not linked with the standard deduction or itemizing, so it may be applied whether taking the standard deduction or if itemizing. Here are the key points:

  1. This is for individuals who are 65 and older and who have a social security number. 
  2. The maximum deduction is $6000 per person, so if filing Married Filing Jointly the total deduction could be as much as $12,000 if both taxpayers are qualified. 
  3. Under current law this deduction does sunset after 2028 – it goes away. 
  4. This deduction lowers taxable income but does not lower Adjusted Gross Income (AGI). This may be referred to as a below the line deduction. 
  5. If married, to get this deduction taxpayers must file jointly. 
  6. This deduction is reduced by 6% of the Modified Adjusted Gross Income (MAGI) to that exceeds $75,000 or $150,000 for a jointly filed return. It cannot go below zero. 
  7. This deduction does NOT require receipt of social security payments.

Who does this benefit?

The senior citizen deduction benefits any qualifying taxpayer who otherwise would have a net federal tax liability and who isn’t phased out due to MAGI being high enough to bring the deduction down to zero. 

Many of the senior recipients of social security benefits don’t have a net federal income tax liability. Many of those who do only have a relatively small federal tax liability. There will be many senior citizens for whom this pushes their tax liability down to zero. And most of those remaining who do have a tax liability will see their tax liability lowered due to this deduction.