The new OBBBA senior bonus deduction lets taxpayers 65+ deduct an extra $6,000 ($12,000 married) through 2028 — here’s who qualifies, the income phase-out, and how to claim it on Schedule 1-A.

If you’re 65 or older — or you’re helping a parent file their taxes — there’s a new deduction you need to know about for your 2025 return, filed in 2026.

It’s called the senior bonus deduction, and it can shelter an extra $6,000 (or $12,000 for a married couple) of income, on top of deductions you’re already taking.

Here are the 7 key facts you need to know: what it is, who qualifies, how the income phase-out works, and exactly which IRS form to use.

1. What Is the New Senior Bonus Deduction

This deduction was created by the “One, Big, Beautiful Bill” (OBBBA), also referred to as the Working Families Tax Cuts legislation.

A few basics to keep in mind:

• It’s temporary — available for tax years 2025 through 2028 only, a four-year window.
• It stacks on top of your regular standard deduction.
• It also stacks on top of the existing additional standard deduction that filers age 65+ already receive.

In other words, this isn’t a replacement for anything you’re already claiming. It’s an extra layer on top.

2. Who Qualifies

Eligibility is fairly straightforward, but every box needs to be checked:

• You must be age 65 on or before the last day of the tax year (December 31, 2025 for your 2025 return).
• The deduction is $6,000 per eligible individual.
• If you’re married filing jointly and both spouses qualify, you can claim $12,000 combined.
• You need a valid Social Security number and must file a tax return to claim it.
• If you’re married, you must file jointly. Married filing separately cannot claim it.
• You can claim it whether you take the standard deduction or itemize.

If only one spouse is 65+ on a joint return, only that spouse’s $6,000 applies — not the full $12,000. The age test works out to this on Schedule 1-A: for a 2025 return, you must have been born before January 2, 1961. For a 2026 return, the cutoff moves to before January 2, 1962.

3. Income Phase-Out Rules

Like many tax benefits, this deduction isn’t unlimited for higher earners.

• The deduction begins to phase out once your modified AGI exceeds $75,000 (single filers) or $150,000 (married filing jointly).
• Above those thresholds, Schedule 1-A cuts the deduction by 6% of the amount over the threshold.
• Your modified AGI is the number on line 3 of Schedule 1-A.

How the Math Works

Part V of Schedule 1-A walks through it line by line. Say you are single, 66 years old, and your modified AGI is $92,000.

1. Subtract $75,000 from $92,000: $17,000
2. Multiply by 6%: $17,000 x 0.06 = $1,020
3. Subtract that from $6,000: $6,000 − $1,020 = $4,980

Your senior deduction is $4,980 instead of $6,000. If you are in the 22% bracket, that deduction saves you roughly $1,100 in federal tax (22% of $4,980). Your own bracket may differ.

On a joint return, the same reduced amount is figured once and then applied to each spouse who qualifies. Here is what the deduction looks like at different income levels:

Modified AGI	Single, 65+	Married filing jointly, one spouse 65+	Married filing jointly, both 65+
$75,000	$6,000	$6,000	$12,000
$100,000	$4,500	$6,000	$12,000
$150,000	$1,500	$6,000	$12,000
$175,000	$0	$4,500	$9,000
$200,000	$0	$3,000	$6,000
$250,000	$0	$0	$0

The deduction disappears entirely at $175,000 for a single filer and at $250,000 for a joint return. Because the cut is only 6 cents per dollar, a few extra thousand dollars of income, like a larger IRA withdrawal, costs you a small slice of the deduction rather than all of it. Still, use the official worksheet or your tax software for the final number.

4. How to Claim It — Schedule 1-A

The IRS created a new form for 2025 returns: Schedule 1-A, “Additional Deductions.”

This single schedule covers several of the OBBBA-era deductions together:

• Tips
• Overtime
• Car loan interest
• The senior bonus deduction

Schedule 1-A attaches to Form 1040, 1040-SR, or 1040-NR, depending on which base form you use.

Good news for most filers: if you use tax software, it typically auto-populates Schedule 1-A once you indicate you (or your spouse) are 65 or older. You generally won’t need to hunt down the form yourself.

5. How It Stacks With Other 2026 Deductions

Here’s where the numbers can add up. For a filer age 65+, three deductions can potentially combine:

1. The regular 2026 standard deduction (amount varies by filing status — single vs. married)
2. The existing additional standard deduction for age 65+ (already in place before OBBBA)
3. The new $6,000 / $12,000 senior bonus deduction

Here is what that adds up to for a filer whose income is low enough to keep the full senior deduction. The totals assume nobody is blind and no phase-out applies:

Tax year	Filer	Standard deduction	Age 65+ add-on	Senior deduction	Total
2025	Single, 65+	$15,750	$2,000	$6,000	$23,750
2025	Married filing jointly, both 65+	$31,500	$3,200	$12,000	$46,700
2026	Single, 65+	$16,100	$2,050	$6,000	$24,150
2026	Married filing jointly, both 65+	$32,200	$3,300	$12,000	$47,500

The senior deduction runs through tax year 2028, so the 2026 rows apply to the return you file in 2027. The age 65+ add-on is $1,600 per qualifying spouse in 2025 and $1,650 in 2026 for married filers, and $2,000 and $2,050 for unmarried filers. If you itemize instead, the senior deduction still applies on top of your itemized total.

6. Common Mistakes to Avoid

• Don’t assume it replaces your existing age-65+ deduction. It’s additional, not a substitute.
• Don’t skip Schedule 1-A even if your tax software normally handles everything — double-check it was generated.
• Don’t guess your phase-out amount. Use the official worksheet if your income is near the $75,000 / $150,000 thresholds.
• Don’t file separately and expect the deduction. Married filers must file jointly to claim it.
• Don’t overlook a missing Social Security number. Each spouse who claims a $6,000 share needs a valid SSN.

7. FAQ

Does this reduce how much of my Social Security benefit is taxed?
No. This is a separate, standalone deduction — it does not directly change the taxability formula for your Social Security benefits. It simply reduces your overall taxable income, which may have an indirect effect, but it’s not the same mechanism as the Social Security taxability calculation.

What if I turn 65 partway through the year?
Eligibility is based on your age as of the last day of the tax year (December 31). If you turn 65 by then, you qualify for that full tax year — even if your birthday was in November or December.

Is this deduction permanent, or does it expire after 2028?
As written under OBBBA, it’s currently scheduled to run through tax year 2028 and then expire, unless Congress acts to extend or make it permanent. Keep an eye on IRS updates in future years for any changes.

Related: Claim ‘No Tax on Tips’ and ‘No Tax on Overtime’ Before These Temporary Breaks Expire in 2028 | $10,000: The New Car Loan Tax Deduction Most Buyers Don’t Know About

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Bottom line: if you’re 65+, this is a deduction worth confirming you’re claiming correctly on your 2025 return. Check your eligibility, watch the income phase-out thresholds, and make sure Schedule 1-A is attached to your return. For the full official rules, visit the IRS page linked throughout this article.