The “extra” standard deduction for taxpayers 65 or older stacks on top of the regular standard deduction. In 2025 and continuing into 2026, seniors enjoy greater tax relief — here’s a comprehensive look.
1. Base Standard Deduction (2025–2026)
- 2025 amounts (returns filed in 2026): Single/Sep: $15,750; Joint: $31,500; Head‑of‑House: $23,625 :contentReference[oaicite:1]{index=1}.
- 2026 amounts: Under OBBB law, base stays elevated — Single = $16,550; Joint = $33,100 :contentReference[oaicite:2]{index=2}.
2. Existing Extra Deduction (Age 65 or Blind)
This IRS‑set bonus automatically adds:
- 2025: Single/Head = $2,000; Married = $1,600 per spouse :contentReference[oaicite:3]{index=3}.
- 2026: Expected inflation indexing continuation (no change announced yet).
3. New “Senior Bonus” under OBBB (2025–2028)
- Value per taxpayer 65+: $6,000 in both 2025 & 2026 (up to $12,000 for married joint filers) :contentReference[oaicite:4]{index=4}.
- Available even if itemizing. :contentReference[oaicite:5]{index=5}
- MAGI limits: Full for single ≤ $75,000, joint ≤ $150,000; phases out 6% > threshold; disappears at single > $175K, joint > $250K :contentReference[oaicite:6]{index=6}.
4. Total Deduction Breakdown
| Year & Filing Status | Base | Age/Blind Bonus | Senior Bonus | Total Deduction |
|---|---|---|---|---|
| 2025 – Single (65+) | $15,750 | $2,000 | $6,000 | $23,750 |
| 2025 – Married Joint (both 65+) | $31,500 | $3,200 | $12,000 | $46,700 |
| 2026 – Single (65+) | $16,550 | $2,000 | $6,000 | $24,550 |
| 2026 – Married Joint (both 65+) | $33,100 | $3,200 | $12,000 | $48,300 |
5. How It Lowers Your Tax Bill
- More income shielded: Each $1 of deduction lowers taxable income accordingly.
- Rate impact: At a 22% bracket, an extra $6K saves $1,320 tax; married couples double that potential.
- Benefit phase‑out: If MAGI exceeds limits, the benefit reduces by 6¢ per $1 of MAGI over threshold.
6. 2025 vs 2026 Comparison
- 2026 sees a higher base deduction, so seniors claim even more overall, though age‑bonus & senior‑bonus remain constant.
- If MAGI is high, the new senior bonus may phase out even while base still helps reduce taxable income.
7. Practical Planning Tips
- Project MAGI early: Ensure eligibility for full bonus by managing Roth conversions/RMDs.
- Standard vs itemizing: Even if you itemize, seniors can still claim the $6K bonus—compare total tax savings.
- Watch for IRS forms: Look for updated Form 1040/1040‑SR instructions in 2026 and 2027.
- Consult your tax pro: Especially if your income is near the phase‑out range.
✅ Summary of Senior Benefits
- 2025 total deduction up to $23,750 (single) or $46,700 (joint).
- 2026 total further increases to $24,550 or $48,300 thanks to inflation adjustments.
- Bonus applies even if itemizing, lowering taxable income at any filing choice.
- MAGI limits matter – phase‑outs reduce the value.
In both years, seniors can significantly reduce taxable income—potentially saving over $1,300 (single) or $2,600 (married)—depending on bracket. Staying informed and planning thoughtfully can maximize your benefit.
