Supposedly the tax relief for older adults in the form of a $6,000 “bonus” deduction that could
offset federal taxes on Social Security benefits for some.
Please explain the detail and just where the bonus $$ is configured on the
1040 standard deduction.
What is the expected net impact on the refund
Married filing jointly over 65
e.g. all factors the same $83,710 agi line #11
less taxes of 32,300 line #14
taxable income of $ 51,410 line #15
if in 2024 refund was 9,430
does that the increase refund to 21,000?
These tax laws are effective when this year 2025?
The bonus deduction of $6000 is an additional deduction to the standard deduction for each taxpayer on the return over the age of 65 with a valid Social Security number. So for married filing jointly where both taxpayers are over 65, the amount will be $12,000 in bonus deduction.
So in your case, married filing jointly with both of you being over 65,
agi line #11 $83,710
the standard deduction for 2025 is $34,700 plus additional bonus deduction of $12,000
So taxable income, line #15 will be $37,010
Tax refund will not go up by the bonus deduction.