What Tax Pros Need to Know About the New $6,000 Senior Deduction

The One Big Beautiful Bill (OBBBA) introduces a range of changes for taxpayers, and one of the most significant for older clients is a new senior deduction available from 2025 through 2028. As a tax professional, understanding the details will help you guide your senior clients in maximizing this valuable benefit.

Key Details of the Senior Deduction

• Amount: $6,000 per eligible taxpayer age 65 or older

• Married Couples: $12,000 total if both spouses qualify

• Eligibility: Taxpayer must be age 65 by the last day of the taxable year

• Phaseout: Begins at $75,000 MAGI (single) / $150,000 MAGI (joint)

• Applies To: Both itemizers and non-itemizers

• Filing Requirement: Married taxpayers must file jointly to claim

  
  

Importantly, this deduction is in addition to the current extra standard deduction for seniors under existing law.

Planning Opportunities for Tax Pros

1. Standard vs. Itemized Deductions: Seniors now have more flexibility. Because the new deduction applies to both itemizers and non-itemizers, clients may still benefit even if they choose the standard deduction.

2. MAGI Phaseouts: High-income seniors may see the deduction phased out. Be prepared to run income projection scenarios, especially for clients on the cusp of the $75,000/$150,000 thresholds.

3. Married Filing Jointly Strategy: Since joint filing is required to maximize the deduction, review filing status options with your senior clients—especially those who typically consider Married Filing Separately for other reasons.

4. Retirement Income Planning: For clients nearing 65, timing distributions, Roth conversions, and other income-generating events could help keep MAGI below the threshold and preserve eligibility.

5. Compliance Requirements: Ensure qualifying individuals’ Social Security numbers are reported correctly on returns. Missing this detail could result in denied deductions.

   
   

Why This Matters for Tax Pros

Between Social Security taxation, RMDs, and Medicare premiums, retirement clients already face complex planning. This new deduction creates a powerful opportunity to reduce taxable income, but only if properly planned for.

Your role as a tax advisor is to:

• Identify eligible clients

• Track MAGI thresholds

• Advise on filing status

• Integrate the new deduction into broader retirement planning

  
  

Final Takeaway

The OBBBA’s new $6,000 senior deduction could offer substantial tax relief for older clients. With the right planning, you can help seniors capture every available benefit while avoiding costly phaseouts.

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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.