Based on the information provided, let's clarify and calculate the new potential standard deduction for 2025:
Initial Standard Deduction:
- Standard Deduction for Married Filing Jointly (MFJ): $31,500.
- Additional Standard Deduction for Seniors: $3,200 (for both you and your spouse, as you're both 65 or older).
Total so far: $31,500 + $3,200 = $34,700.
New Additional Deduction for Seniors (Effective 2025):
- Starting in 2025, individuals aged 65 and older may also claim an additional deduction of $6,000 each under new law.
- Since there are two of you (both are seniors), you can add $6,000 × 2 = $12,000.
Total Standard Deduction:
Combining both the existing deductions and the new ones:
$34,700 + $12,000 = $46,700.
Phaseout Based on Income:
It's important to remember that this new deduction is subject to phaseout for income over $150,000 for those filing Married Filing Jointly. If your income exceeds $150,000, the additional $12,000 deduction may begin to phase out, and you'll need to calculate how much you're still eligible for based on your specific income level.
Here is a link to the Tax Reform tax calculator: Tax Reform tax calculator
Have an amazing day. Evelyn M (CPA 20+ years)
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