Enhanced Deductions for Seniors

[user17544847578]

Good evening, 

My husband and I are 70 and 79 this year.  In response to the Big Beautiful Bill that was passed, what deductions should we look for when filing our 2025 taxes with Intuit Turbo tax?  Should we purchase the Intuit program again this year or do we qualify for the tax program at no cost?  

Respectfully,

Edith

[xmasbaby0]

You have not shared any information about the amount of your income or the sources of your income, so we cannot say whether you will be able to use the Free Edition or if you will need a higher version of the software.   The Free Edition can only be used for very simple returns that only require a Form 1040.   If your return requires the use of any extra forms or schedules, you have to upgrade to a paid version.

[Cindy4]

You may be eligible to use the new senior deduction to reduce your taxable income if you fall under the income threshold.  You can read a good overview of everything here.

Some other items that may help you are the raising of the State and Local tax cap to $40,000 if you earn up to $500,000, deduction for auto loan interest for certain vehicles.

We have this Free Tax Reform Calculator that you can create a custom scenario in.

If you are using TurboTax Online, you can start your return for free, and then depending on the time of year you file and your items of income and expense, the pricing will vary.  

Hope this helps!

Cindy

[user17544847578]

Thank you for responding to the question about the cost of Intuit Turbo tax program.  Can you tell me about the enhanced deductions for seniors?

[Loretta P]

The One Big Beautiful Bill (OBBB) establishes a temporary personal exemption of $6,000 for individuals who are 65 years or older (subject to income limitations and identification requirements) beginning with tax year 2025 through 2028.  If you file a joint return and both of you are over 65, you both will claim the additional $6,000 for a total of $12,000.

• A  qualified individual is: 
• 1) To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year, and 
• 2) In the case of a joint return, the taxpayer’s spouse, if the spouse has attained age 65  before the close of the tax year.
• In the case of any taxpayer for any taxable year, the $6,000 amount shall be reduced (but not below zero) by 6% of the taxpayer’s modified adjusted gross income  (MAGI) that exceeds $75,000 ($150,000 in the case of a joint return).
• Deduction is available for both itemizing and non-itemizing taxpayers.
  • Failure to provide it is treated as a math or clerical error allowing IRS disallowance of the credit without a formal audit under IRC § 6213(g)(2).
• Seniors file jointly if married, to claim the deduction for both spouses.
• A valid Social Security number is required to claim the deduction.

• The section applies to taxable years beginning after December 31, 2024.

One Big Beautiful Bill Act: Tax deductions for working Americans and seniors