Expert Reviewed The 2025 Senior Deduction under the One Big Beautiful Bill allows up to a $6k deduction per taxpayer for taxpayers 65 or older by the end of 2025 (assuming the taxpayer has a valid social security number). The deduction has a phase out triggered once Modified Adjusted Gross Income (MAGI) exceeds $75k for a single taxpayer or $150k for married filing jointly taxpayers. Here's how to figure out if your income will be under the phase out trigger:Adjusted Gross Income (AGI) = total gross income from all sources less certain adjustments on Schedule 1 of Form 1040 (resource: Definition of adjusted gross income)Add back: Foreign Earned Income ExclusionAdd back: Excluded income from U.S. territoriesIf the total is under $75k/$150k (single/married filing jointly), then you'll get the full deduction. Note that non-taxable Social Security benefits are not considered an add-on to your AGI when calculating your MAGI for the 2025 Senior Deduction. But the taxable portion of your Social Security benefits would be included. I hope this info is helpful! I'll stay tuned in case you have any follow-up questions.

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Al2531

Level 2

Solved

How is the 2025 Senior Deduct Magi calculated. What are the addons to the adjusted income. Is nontaxable Social Security benefits a addon?

Forum|Forum|1 year ago
August 6, 2025
19 replies
291 views

No text available

Ask the Experts - Beautiful - Aug 2025

Best answer by KatieP1

Expert Reviewed

The 2025 Senior Deduction under the One Big Beautiful Bill allows up to a $6k deduction per taxpayer for taxpayers 65 or older by the end of 2025 (assuming the taxpayer has a valid social security number).

The deduction has a phase out triggered once Modified Adjusted Gross Income (MAGI) exceeds $75k for a single taxpayer or $150k for married filing jointly taxpayers.

Here's how to figure out if your income will be under the phase out trigger:

Adjusted Gross Income (AGI) = total gross income from all sources less certain adjustments on Schedule 1 of Form 1040 (resource: Definition of adjusted gross income)
Add back: Foreign Earned Income Exclusion
Add back: Excluded income from U.S. territories

If the total is under $75k/$150k (single/married filing jointly), then you'll get the full deduction.

Note that non-taxable Social Security benefits are not considered an add-on to your AGI when calculating your MAGI for the 2025 Senior Deduction. But the taxable portion of your Social Security benefits would be included.

I hope this info is helpful! I'll stay tuned in case you have any follow-up questions.

rjs

Level 15

Answered in your previous post of the same question.

KatieP1

Answer

Level 6

Expert Reviewed

The deduction has a phase out triggered once Modified Adjusted Gross Income (MAGI) exceeds $75k for a single taxpayer or $150k for married filing jointly taxpayers.

Here's how to figure out if your income will be under the phase out trigger:

Adjusted Gross Income (AGI) = total gross income from all sources less certain adjustments on Schedule 1 of Form 1040 (resource: Definition of adjusted gross income)
Add back: Foreign Earned Income Exclusion
Add back: Excluded income from U.S. territories

If the total is under $75k/$150k (single/married filing jointly), then you'll get the full deduction.

I hope this info is helpful! I'll stay tuned in case you have any follow-up questions.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

smithbg1

Level 2

Thank you! I have looked everywhere for how the MAGI is calculated and you're the ONLY one who has stated that MAGI does not include the non-taxable portion of Social Security.

KatieP1

Level 6

Glad I could help, @smithbg1!

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

KusyJ

Level 4

The term modified adjusted gross income in the new law is your adjusted gross income increased by any amount excluded from gross income under certain sections of the tax code that include foreign income.

Your adjusted gross income may include any taxable portion of Social Security based on your tax situation. For example, if your Social Security benefits are not taxable based on your income, it is not accounted for in your adjusted gross income.

Depending upon your income, some amount of your Social Security benefits will be taxable up to 85%. The taxable portion of your Social Security benefit is added into your adjusted gross income. If that adjusted gross income with any foreign income exclusions added back in will be compared to the $75,000 ($150,000 Married Filing Joint) phase-out level for the $6,000 personal exemption.