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Level 2
December 13, 2025
Question

2025 Senior Deduction under the OBBB

  • December 13, 2025
  • 9 replies
  • 0 views

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.

9 replies

VolvoGirl
Level 15
December 13, 2025

 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

 

 

 

 

VolvoGirl
Level 15
December 13, 2025

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

 

 

 

Level 2
December 13, 2025

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.

Level 4
January 11, 2026

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

 

Level 4
January 11, 2026

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

Level 15
January 11, 2026

@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.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 2
January 23, 2026

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? 

DoninGA
Level 15
Level 15
January 23, 2026

@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/

Level 2
January 23, 2026

I am using online version

Level 2
January 25, 2026

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.

VolvoGirl
Level 15
January 25, 2026

@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….

 

Level 2
January 26, 2026

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 

Level 2
January 27, 2026

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

Level 2
February 24, 2026

Why can't I file my 

dc tax return electroncially?  the senior age for this deduction is 65 and Im 64.  This appears to be a hiccup in the system or another way to hold up returns.  Is there a way to fix this.

 

MarilynG
Level 15
February 25, 2026

What error do you get trying to Efile your DC return?  If you can give more details, we'll try to help.  Here's more info on the Senior Deduction.

 

@ivgirl 

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