A significant tax change for older adult taxpayers this year comes in the form of a new benefit known as the “senior bonus deduction.”
Tucked into Trump’s 2025 tax bill, this provision is designed to give retirees and older taxpayers extra relief at filing time. But while the idea sounds simple enough, the new deduction has stirred questions about who qualifies and how the deduction works with other tax breaks.
For example, if you’re 65 or older and have been itemizing your tax deductions, you may wonder if this new bonus deduction could benefit you.
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After all, most taxpayers claim the standard deduction — and those who do can stack the bonus deduction on top of the regular standard deduction and the existing extra standard deduction for those 65 and older.
Here’s more to know about what the new bonus deduction means for those over age 65.
What is the bonus deduction for older adults in the Trump tax bill?
A new bonus deduction kicks in beginning with the 2025 tax year due to recently enacted GOP tax legislation, which President Donald Trump calls the “big beautiful bill.”
This bonus allows taxpayers age 65 or older to claim an additional deduction — up to $6,000 for singles, or $12,000 for married couples where both spouses qualify.
Key points:
- You must be 65 or older by December 31, 2025.
- The bonus amount tops out at $6,000 for individuals and $12,000 for married couples where both spouses are over 65.
- This deduction phases out above a certain income level: Modified Adjusted Gross Income (MAGI) of $75,000 for singles and $150,000 for married filing jointly. It phases out completely for MAGI above $175,000 and $250,000, respectively.
- The IRS says you must “include the Social Security Number of the qualifying individual(s) on the return, and file jointly if married, to claim the deduction.”
Because the deduction applies regardless of whether you itemize or take the standard deduction, it can be helpful for those with sufficient deductible expenses to itemize but who also want to further reduce their taxable income.
Keep in mind: This new tax break is temporary, set to be available from 2025 through 2028 unless Congress renews it.
How it works for standard deduction takers
As Kiplinger has reported, taxpayers 65+ who typically claim the standard deduction can claim the up to $6,000 bonus deduction (or $12,000 for married couples where both are age 65+). That’s in addition to the existing extra standard deduction for those 65 and older ($2,000 for singles, $1,600 per qualifying individual married filing jointly).
For example, a single filer age 65 or older could have a standard deduction of $15,750 (the new base amount), plus $2,000 (existing age deduction), plus $6,000 (bonus), for a total deduction of $23,750, assuming their income is below the phase-out threshold.
How the over 65 bonus deduction works for itemizers
The existing extra standard deduction for individuals over 65 only benefits those who claim the standard deduction. They add the appropriate extra standard deduction amount for those 65 or older to their existing standard deduction.
However, the 2025 bonus deduction for older adults temporarily offers a separate tax benefit. (You aren’t required to take the standard deduction to claim it.)
So, even if you itemize your deductions — claiming mortgage interest, charitable giving, or medical expenses, for example — you may still benefit from the new separate bonus deduction for those 65 and older.
What about taxes on Social Security benefits?
Despite what you may have heard, the bonus deduction doesn’t necessarily eliminate taxes on your Social Security benefits.
In fact, Trump’s tax bill does not directly change Social Security taxation and makes no changes to the Social Security program.
Instead, as mentioned, the new law, enacted on July 4, 2025, provides a temporary, income-based bonus over-65 tax deduction rather than a full repeal of Social Security benefit taxes. That deduction boost could, for some, indirectly impact how much Social Security income is subject to tax.
For more information, see Kiplinger’s report: No SS Tax Cut in Trump’s Big Bill.
‘Senior bonus deduction’ 2025: What to do now
The new bonus deduction is a temporary tax break that could benefit a broader range of older adult taxpayers, including those who itemize and those who choose the standard deduction.
Here are a few things to consider as we head toward the final quarter of 2025:
Review your income. Think about your expected MAGI to gauge how much of the $6,000 deduction you can claim.
Keep track of all deductible expenses. This helps ensure that claimed deductions are documented, which can result in a lower taxable income and prevent paying more taxes than necessary.
Consult a tax professional. Since the rules are new and income phaseouts apply, professional advice can help you optimize your retirement tax strategy for 2025 and beyond.