If you will be age 65 or older by December 31, 2025, a new tax break may be available to you.

Starting in 2025, seniors can take advantage of a new bonus tax deduction. This deduction is available even if you do not itemize, making it accessible to more taxpayers.

How much is the deduction?

Eligible taxpayers may qualify for a bonus deduction of up to $6,000 per person.
For married couples filing jointly, if both spouses are age 65 or older, the deduction can be as much as $12,000 total.

Important note for married taxpayers: you must file a joint return to claim this benefit. Filing separately will disqualify you, even if only one spouse meets the age requirement.

This deduction is on top of:

• The regular standard deduction, and
• The existing additional deduction for taxpayers age 65 or older

Income limits apply

The bonus deduction begins to phase out at higher income levels:

• Single filers: phaseout starts at $75,000 MAGI and ends at $175,000
• Married filing jointly: phaseout starts at $150,000 MAGI and ends at $250,000

MAGI generally equals adjusted gross income, plus certain uncommon items such as tax-free foreign income.

Planning opportunity

With proper planning, it may be possible to preserve all or part of this deduction by managing income levels. Common strategies include:

• Spreading capital gains over multiple years
• Staggering Roth IRA conversions instead of converting all at once
• Increasing business deductions or making additional retirement contributions

If you’re approaching these income thresholds, proactive planning can make a meaningful difference.