Is the Senior Tax Deduction incorrectly reported as Qualified business income deduction, $5,296 In the "Explain my Taxes"?

[dillar]

I have no income that would trigger the QBI. Plus, the total deductions does not show the Senior Tax Deduction

[xmasbaby0]

No.   You are looking at the wrong line.   Look at line 13b.

The “senior deduction” is added automatically by the software based on the date of birth and filing status you entered into MY INFO.  You do not need to take any extra steps to enter it. (And…the new senior deduction has nothing to do with whether you are getting Social Security)

2025 STANDARD DEDUCTION AMOUNTS

SINGLE $15,750  (65 or older/legally blind + $2000)

MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600)

MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600)

HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)

For 2025 through 2028 there is an extra  deduction amount of up to $6000 per individual 65 or older filing Single, MFJ, or HOH which is phased out for taxpayers with modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers.

The $6,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e.  Turbo Tax automatically includes it.

IRS Schedule 1-A
https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf

[VolvoGirl]

This post with a screenshot does show the Senior Deduction being shown under QBI, in Basic vs Deluxe editions. That might just be a display screen issue. Check your actual Schedule 1-A and 1040 line 13b.
https://ttlc.intuit.com/community/taxes/discussion/2025-senior-deduction-under-the-obbb/01/3716229

For Online version you can preview the 1040
https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

See the 1040…….

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[SuziM]

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[socalgalish]

@SuziM Hijacking this to add that I am searching for answers on this. Turbo Tax is including the 6000 Senior deduction (with the standard deduction using the taxable income c.g. method) in calculating my self-employed QBI. But it is irrelevant to my net QBI and is not supposed to be a factor — correct? If so, how do I force turbo tax to correct that (Desktop edition)?

Thanks you 

[Mike9241]

The senior deduction is an additional deduction, but it is not included with your standard or itemized deductions. It's calculated on Schedule 1-A, and the amount, along with any others on that schedule flows to line 13b of your 1040

The QBID deduction is also not included in either your standard or itemized deductions. It's computed on Form 8995 and flows to line 13a of the 1040

[VolvoGirl]

@socalgalish   I think they were working on that.  Seems to be just a display issue.  If you have the Desktop program try updating it.  Or where  are you seeing it?  

The 1/23/26 post on this thread has a screenshot showing the Senior Deduction under QBI, in Basic vs Deluxe editions. That might just be a display screen issue. Check your actual Schedule 1-A and 1040 line 13b.
https://ttlc.intuit.com/community/taxes/discussion/2025-senior-deduction-under-the-obbb/01/3716229

[Vanessa A]

No, that is not correct.  QBI is the lesser of 20% of your QBI or 20% of taxable income minus net capital gains.  The senior bonus deduction lowers your taxable income.  If you look at line 14 of form 8995, you will see the numbers and calculations for you.  Line 14 is a limiter and it would include your Senior deduction. 

QBI is calculated as follows:

Reported income-

expenses-

50% of your SE taxes-

Self Employed Health Insurance-

Retirement contributions.  

Note: There can be other deductions as well, but these are the most common. It can also be limited by taxable income limits which would include W-2 income and capital gains.  

Example.  You have $11,000 in income from self employment.  $1,000 in expense.  $1,530 in Self Employment Taxes.  Your QBI would be calculated as follows:

$11,000

-$1,000

=$10,000

-(1,530/2)

=$9,235

QBI tentative deduction= 20% x $9,235= $1,847

You have other income of $30,000 and you are single but over 65.  So after your standard deduction and senior bonus, your taxable income is $8,250.  Then you would take 20% of that which would be $1,650.  So your QBI would be limited to $1,650. 

So you should not override it.

@socalgalish 

[socalgalish]

Thank you but I understand that. The query is not about what thye are, it's about the fact that the Sr deductions should not be used to calculate QBI. 

[socalgalish]

@VolvoGirl Thanks for the response. It isn't a display issue because the 6000 is correctly computed in Schedule 1-A and appears on line 13b on Form 1040. So it is correctly factored into taxable income.

BUT, my question/concern is that the Sr deduction is being applied to calculate my QBI from my self-employed business when using the taxable income method of QBI calculation (i.e., 20% of (taxable income) minus (standard deduction) minus senior deduction). My understanding from various online sources is that the Sr deduction is NOT supposed to be used to calculate QBI by the taxable income method (because it is irrelevant to business income and thus unfairly lowers the 20% QBI). 

[Vanessa A]

(i.e., 20% of (taxable income) minus (standard deduction) minus senior deduction...  

Are you saying this is what TurboTax is doing?  If so, this is correct and what it should be doing. If you are stating something else please explain. 

The senior deduction should be part of it because it is affecting your taxable income.  So since taxable income is a component of determining how much of a QBI deduction you can take, the fact that the senior bonus lowers your taxable income, it is part of the numbers that will be used to calculate QBI.  

Line 11 Enter your taxable income figured before any QBI deduction, computed as follows.  Form 1040 ...These are the instructions for the QBI

So this is saying you will start with your AGI then subtract your standard or itemized deductions, then subtract line 13b.  Line 13b includes the senior deduction.  

[socalgalish]

@Vanessa A Thank you... I completely understand that... but WHY is the senior deduction being included in the QBI calculation at all?  50% of the articles about this online state that it is not used to calculate QBI and 50% say it is. It has absolutely nothing to do with business income and if the sch C method of QBI calcualtion is used, of course it isn't a factor.  I'm trying to understand where the explanation/guidance is about how this senior deduction, which is separeate from the standard deduction, became a factor in calculating QBI.

[VolvoGirl]

@socalgalish   Can you post a screenshot of it being included in the QBI calculation?  You sure it's not just on a  review or summary screen?

[MonikaK1]

The senior deduction, along with all other items of income and deduction, are relevant in determining whether your QBI deduction is subject to limitation based on your overall income.

See this TurboTax blog article and this IRS article for more information.

@socalgalish 

[socalgalish]

@VolvoGirl There is no screenshot with the subtraction per se, because the summary worksheet just does the math on 20% using the two methods and states the net QBI via Sch C (line 1 of the QBI Component worksheet) and via taxable income (line 23 of the QBI  Deduction Summary form - I'm using the desktop edition),  but the 20% it gives me is *exactly*  equal to (taxable income - 17,750 - 6,000) * 20%). Of course, using the net Sch C method gives a much higher QBI (all my income is via Sch C), so having that 6000 deduction effectively cancels out the advantage. I understand that this is probablyu not a mistae at all, but it's irritating to suffer for what was supposed to be nothing to do with business income. 

Thanks all for your help