topic 2025 Senior Deduction under the OBBB in Get your taxes done using TurboTax

2025 Senior Deduction under the OBBB

maryherndon54 — Sat, 13 Dec 2025 03:05:14 GMT

The 2025 Senior Deduction under the OBBB allows up to a $6k ADDITIONAL deduction per taxpayer for taxpayers 65 or older by 2025 yr end. The deduction is phased out once MAGI exceeds $75k for a single taxpayer or $150k for MFJ taxpayers. This has been confirmed by TurboTax in previous discussions this year.

To find this deduction you need to go to Schedule 1-A (new this year) Parts V & VI, where the deduction is calculated automatically. The result is entered on 1040 on line 13c.

Re: 2025 Senior Deduction under the OBBB

VolvoGirl — Sat, 13 Dec 2025 03:05:07 GMT

My Home & Business on Windows 11 is working right. Have you updated your program? The Enchanced Senior Deduction is automatic and is listed separately from your Standard Deduction. The 6,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors. . On a joint return the phaseout is calculated separately for each person, so the 6% phases out $6,000 for each person.

Schedule 1-A total on line38 goes to 1040 line 13b.
https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf

Here is a spreadsheet I made

Re: 2025 Senior Deduction under the OBBB

VolvoGirl — Sat, 13 Dec 2025 03:15:14 GMT

Have you opened the Forms Mode? Here is Schedule 1-A from Home & Business

Re: 2025 Senior Deduction under the OBBB

maryherndon54 — Sat, 13 Dec 2025 03:27:37 GMT

Thank you for your quick reply. I found Schedule 1-A immediately after I posted my question, but was unable to take the question down. So instead I edited it, turning it into instructions for how to find the deduction on the 2025 software. You can go back and see that my question became instructions instead.

Again, I appreciate your quick response. Nice to know there are people out there who care.

Re: 2025 Senior Deduction under the OBBB

shirlandron — Sun, 11 Jan 2026 12:46:45 GMT

I opened forms mode and do not see schedule 1A help?

Re: 2025 Senior Deduction under the OBBB

shirlandron — Sun, 11 Jan 2026 13:46:33 GMT

If a file a joint return schedule 1A shows up but if I file married filing separate it does not show up? Help!

Re: 2025 Senior Deduction under the OBBB

xmasbaby0 — Sun, 11 Jan 2026 15:26:24 GMT

@shirlandron It does not show up when you file MFS because you are disqualified for the $6000 senior deduction if you file MFS. You can get that deduction if you are filing Single, Married Filing Jointly, or Head of Household.

Re: 2025 Senior Deduction under the OBBB

user17691893285 — Fri, 23 Jan 2026 17:33:14 GMT

I learned that using Turbotax Basic, the new Senior Deduction shows up as a Qualified Business Expense. However, if I switch to Deluxe, it appears properly as the Senior Deduction. I switched back to Basic and appears as a QBI. I wnat to be sure my return is filed properly. Can this be corrected in the software?

Re: 2025 Senior Deduction under the OBBB

DoninGA — Fri, 23 Jan 2026 17:42:22 GMT

@user17691893285 There is not a TurboTax Basic desktop edition for tax year 2025 for US tax returns - https://turbotax.intuit.com/personal-taxes/cd-download/

Re: 2025 Senior Deduction under the OBBB

VolvoGirl — Fri, 23 Jan 2026 17:44:00 GMT

@user17691893285 Can you post a screenshot?

Re: 2025 Senior Deduction under the OBBB

user17691893285 — Fri, 23 Jan 2026 18:12:19 GMT

Basic Version:

Basic Version

Deluxe Version:

Deluxe Version

Re: 2025 Senior Deduction under the OBBB

user17691893285 — Fri, 23 Jan 2026 18:13:38 GMT

The online chat I had did not help.

Re: 2025 Senior Deduction under the OBBB

user17691893285 — Fri, 23 Jan 2026 18:19:15 GMT

I am using online version

Re: 2025 Senior Deduction under the OBBB

theady — Sun, 25 Jan 2026 17:40:23 GMT

The desktop Turbo Tax is not computing the enhanced senior deduction correctly for married filing jointly. It should calculate the MAGI over $150,000 and subtract 6% of that amount from $12,000. However, the current logic is subtracting that 6% over the $150,000 from each eligible senior, or effectively doubling the amount of the reduction.

Example: Assume total MAGI of $214,000. The reduction would be $214,000 - $150,000 =$64,000.00 x .06 =$3,840.00 reduction. That would reduce the joint enhanced deduction to $12,000 - $3,840 = $8,160. However, the Turbo Tax tool is subtracting $3,840 from each eligible’s $6,000, leaving an enhanced senior deduction per eligible of $2,160 for a total joint enhanced deduction of only $4,320. A $3,840 understatement of the allowed deduction. I’m trying to connect with Turbo Tax to see if they are working on fixing this.

Re: 2025 Senior Deduction under the OBBB

VolvoGirl — Sun, 25 Jan 2026 17:44:38 GMT

@theady Sorry, Turbo Tax is right. On a joint return the phaseout is calculated separately for EACH person, so the 6% phases out for each spouse, making it effectively 12%.

Fill out the actual IRS SCH 1-A by hand to check….

Re: 2025 Senior Deduction under the OBBB

VolvoGirl — Sun, 25 Jan 2026 17:52:44 GMT

@theady Here’s my spreadsheet I made for someone else having 211,000 AGI close to yours. My spreadsheet matches the IRS and Turbo Tax

Re: 2025 Senior Deduction under the OBBB

maryherndon54 — Sun, 25 Jan 2026 18:25:05 GMT

Volvogirl is correct. The 6% calculation is per person, not per couple. This would be 100% fair if the upper threshold for MFJ was $350,000 (2 x $175,000) . But it isn’t. It’s $250,000 So in effect, there is a marriage penalty. I was confused at first myself.

Re: 2025 Senior Deduction under the OBBB

dillar — Mon, 26 Jan 2026 20:07:20 GMT

In the Online version, when you do the "Explain my Taxes" in "Federal Review" you get this:

Your total deductions for the year were $xx,xxx, including:
- Itemized Deductions: $xx,xxx
- Deductible mortgage interest, $xx,xxx
- Deductible Charitable Contributions, $x,xxx
- State and Local Tax Deduction, $xx,xxx
- Qualified business income deduction, $5,296 <==== This should read as Senior Deduction not QBI

When I hand calculate based my income 5,296 is the correct calculation for Senior Deduction. It's just the wrong description in this Review page

Re: 2025 Senior Deduction under the OBBB

natural-52 — Tue, 27 Jan 2026 17:24:18 GMT

Right now SC is adding the $12000 back plus another $1500 adjustment to the standard deduction. What to do?

Re: 2025 Senior Deduction under the OBBB

theady — Tue, 27 Jan 2026 18:00:03 GMT

Thanks for the clarification. Seems there's a penalty baked into the calculation for married filing jointly. Not surprising.