Under the One Big Beautiful Bill Act (OBBBA), taxpayers aged 65 and older can claim a temporary Enhanced Senior Deduction of $6,000 per person ($12,000 for married couples if both are 65+).
This bonus deduction is available from 2025 through 2028 and can be claimed whether you choose to itemize or take the standard deduction. However, it features strict income limitations based on your Modified Adjusted Gross Income (MAGI).
Income Limits and Phase-Out Thresholds
The enhanced deduction is designed for lower- and middle-income retirees. Once your income crosses a specific threshold, the benefit begins to shrink until it is completely eliminated.
| Filing Status | Full $6,000 Deduction If Your Income Is… | The Phase-Out Range(Deduction shrinks) | Completely Phased Out If Your Income Exceeds… |
| Single / Head of Household | $75,000 or less | $75,000 – $175,000 | $175,000 |
| Married Filing Jointly | $150,000 or less | $150,000 – $250,000 | $250,000 |
How the Phase-Out Works
For every dollar your MAGI goes over the initial threshold ($75,000 for individuals / $150,000 for joint filers), the deduction is reduced by 6 cents (a 6% reduction rate).
Example: If you file as a single senior and your MAGI is $85,000 ($10,000 over the limit), your deduction is reduced by $600 ($10,000 × 0.06). Your final Enhanced Senior Deduction would be $5,400.
Key Rules to Keep in Mind
- Filing Status Restriction: Married couples who choose to file separately are completely disqualified from claiming this deduction.
- Age Requirement: You must turn 65 on or before the last day of the tax year.
- Filing Paperwork: To claim this tax break, you must attach the new Schedule 1-A to your federal tax return.