2025 additional standard deduction for age 65+ and the new $6,000 senior deduction

[afletchertfc]

There is an additional standard deduction for taxpayers age 65 and over, which was $1,550 each for married filing joint (MFJ) on the 2024 federal Form 1040, which I believe is $1,600 per person MFJ on the 2025 return (to be filed in 2026).  The recently-passed legislation One Big Beautiful Bill provides for a 'senior deduction' of $6,000 per person, phased out beginning with MFJ modified Adjusted Gross Income of $150,000 and over. Question 1: can both these deductions  (the $1,600 and $6,000) be taken on the 2025 income tax return?  

Question 2: regarding the phase-out of $6,000, how will that work and at what income level will it be zero?

[rjs · Accepted solution]

"Question 1: can both these deductions (the $1,600 and $6,000) be taken on the 2025 income tax return?"

Yes.

"Question 2: regarding the phase-out of $6,000, how will that work and at what income level will it be zero?"

The additional $6,000 deduction is gradually reduced if MAGI is over $75,000 ($150,000 if married filing jointly) and it is reduced to zero if MAGI is $175,000 or more ($250,000 if married filing jointly).

For this deduction, MAGI is Adjusted Gross Income (AGI), Form 1040 line 11, plus the Foreign Earned Income Exclusion and any excluded income from sources in Puerto Rico, Guam, American Samoa, and the Northern Mariana Islands.

[rjs · Accepted solution]

I should point out that the additional deduction for seniors is available for 2025 through 2028.

[afletchertfc]

So as far as the phase-out of $6,000, since it begins at $150,000 for MFJ and ends as $250,000, essentially reduce the $6,000 by 6% ($6,000/$250,000-$150,000) of the excess over $150,000; for example: MFJ with MAGI of $185,000.  $185,000 - $150,000 = $35,000 x 6% = $2,100.  $6,000 - $2,100 = $3,900 x 2 since MFJ = $7,800 allowed out of the $12,000 potential.  Agreed?  

[rjs]

Yes, that's correct. The law actually specifies that the deduction is calculated that way. It's reduced by 6% of MAGI in excess of $75,000 ($150,000 for MFJ). The phaseout range that I stated is the result of that calculation. The law specifies the 6%, not the beginning and end of the range.

I would just point out that you are assuming that both spouses on the joint return are eligible for the deduction (both 65 or older and have a Social Security number). The deduction is calculated separately for each spouse. If only one is eligible, that one gets $3,900 in your example, and the other gets no additional deduction. The "potential" deduction is $6,000, not $12,000.

[eovertree]

will these deductions be covered in Turbotax questions?

[VolvoGirl]

Yes but they are automatic.  The 6,000/12,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e. Turbo Tax automatically includes it if you qualify.

And you also automatically get the Standard Deduction unless your itemized deductions are more.  

[rlktt]

According to the IRS website:

• The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).

Here's the page where the above is stated:

One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors | Internal Revenue Se...

[NeilGleason]

For single filers, the $6,000 enhanced senior deduction is reduced by 6% for AGI in excess of $75,000 (=0 at $175,000 AGI)

For 2 seniors MFJ, the combined $12,000 senior deduction is essentially reduced by 12% for AGI in excess of $150,000 (=0 at $250,000 AGI).

The higher 12% rate of reduction is NEVER mentioned in any descriptions of this new deduction.  

[rjs]

---

@rlktt wrote:

According to the IRS website:

• The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).

@rlktt 

I'm not sure what your point is. The sentence that you quoted from the IRS web page is simply telling you that $6,000 + $6,000 = $12,000. The page doesn't say anything about how the phaseout is calculated.

[VolvoGirl]

It's not actually 12%.   It  is 6% for EACH spouse.  But works out the same.  Here is a post I just worked up.

Sorry. It is phased out for EACH spouse. Fill out Sch 1-A yourself and see. It's pretty easy. Then why would they even have 2 lines 36a and 36b for spouse?

IRS Schedule 1-A
https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf

See IRS instructions for 1040 line 110
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
If you are married and filing jointly, both you and your spouse were born before January 2, 1961, and you both have a valid SSN, the maximum amount of the enhanced deduction for seniors is $12,000. The $6,000 per person amount is reduced if your MAGI is more than the amount shown next for your filing status.

Here is the actual IRS 1-A.  FILL IT OUT 

[rlktt]

To clarify, I was responding to your statement: "The "potential" deduction is $6,000, not $12,000." Perhaps you meant to say that the "potential" deduction is $6,000 *per person*. Without that added text, it reads like the maximum is $6,000, period. Thanks.