2026 Tax Season Brings Meaningful Relief for Senior Clients

The 2026 tax season marks the beginning of some significant tax relief for older taxpayers, especially those age 65 and older. Thanks to changes in federal tax law, many seniors are now positioned to keep more of their hard-earned income and receive larger refunds — a development that’s especially meaningful for clients on fixed incomes.

Understanding these new rules is critical for tax professionals preparing returns this season. Here’s a breakdown of what’s driving this relief and how it impacts planning for your senior clients.

A New Bonus Deduction for Seniors

One of the biggest developments for 2026 is the introduction of a new senior bonus deduction under the One Big Beautiful Bill Act (also referred to as the One, Big, Beautiful Bill). This temporary provision allows taxpayers age 65 and older to claim up to:

• $6,000 extra deduction for individual filers

• $12,000 for married couples where both spouses qualify

  
  

This bonus deduction is available in addition to the already elevated standard deduction and other age-related tax benefits, and it applies whether a taxpayer itemizes or takes the standard deduction.

This has the potential to reduce taxable income significantly for older clients — particularly those with moderate incomes — and may result in hundreds of dollars in tax savings or larger refunds when their returns are prepared.

Why This Matters for Your Senior Clients

For many retirees, reducing taxable income directly impacts their financial comfort and annual planning. As advisors, we need to be aware that:

• The senior bonus deduction is temporary, scheduled to be available for tax years 2025 through 2028.

• Income limits apply: the deduction begins to phase out when a taxpayer’s modified adjusted gross income exceeds a certain threshold (e.g., $75,000 for a single filer and $150,000 for joint filers).

• This new provision does not eliminate federal taxes on Social Security benefits, but it can still substantially lower a senior’s overall taxable income and potentially reduce or erase tax owed on Social Security and other income streams.

  
  

For tax pros, this means careful evaluation of your clients’ income profiles and deductions can help maximize their benefits this season.

Increased Standard Deductions and Other Adjustments

In addition to the new senior bonus deduction, inflation adjustments to the standard deduction for 2026 further benefit taxpayers — especially those who are 65 or older. While these inflation adjustments apply to all taxpayers, the combination with the senior bonus deduction particularly boosts the potential savings for retirees.

These structural changes mean many older clients could see larger refunds or lower taxes owed than in prior years — a welcome shift for many families navigating retirement finances.

What Preparers Should Do Now

Here are a few action steps to consider as you review senior clients’ returns this season:

✔ Identify Eligibility Early

Confirm your clients’ ages, filing status, and income levels so you can determine whether they qualify for the senior bonus deduction and if the full amount applies.

✔ Use Updated Software Tools

Ensure your tax preparation platform — like MyTAXPrepOffice — has the latest updates and calculations in place to automatically apply new deductions where eligible.

✔ Communicate with Clients

Let your senior clients know about these changes. Many may be unaware of the new bonus deduction and how it could directly benefit their tax outcome.

Final Thoughts

The 2026 filing season brings meaningful financial relief for millions of seniors, and as tax professionals, you play a vital role in helping clients understand and leverage these changes. By staying informed and proactive, you can provide significant value and help clients maximize their returns this year.

Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.