A Complete Guide for U.S. Individual Taxpayers
The IRS has introduced a temporary “bonus” deduction for seniors available from 2025 through 2028. This additional tax benefit is designed to provide relief to older taxpayers facing higher living and medical expenses. Understanding who qualifies, how much is available, and what income phase-out triggers apply is critical for accurate tax planning and maximizing refunds.
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📌 What Is the Seniors’ Bonus Deduction?
In addition to the regular standard deduction and the extra deduction for seniors (65+), the IRS-approved legislation grants an extra “bonus” deduction during the years 2025–2028. This is aimed at seniors whose fixed incomes may not keep pace with inflation.
👵 Who Qualifies for the Bonus Deduction?
- Taxpayers aged 65 or older by the end of the tax year.
- Must be a U.S. citizen or resident alien.
- Available to those filing as Single, Head of Household, or Married Filing Jointly.
- Not available for nonresident aliens or dependents claimed on another return.
Like the standard senior deduction, this bonus is automatically applied when you file your return — no separate election is required.
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💲 Deduction Amounts (2025–2028)
| Filing Status | Bonus Deduction (per year) |
|---|---|
| Single / HOH | $1,500 |
| Married Filing Jointly (per spouse over 65) | $1,200 |
| Married Filing Separately | $1,200 |
These amounts are in addition to the regular senior/ blind additional standard deduction.
⚖️ Phase-Out Triggers
The seniors’ bonus deduction begins to phase out at higher income levels. For tax years 2025–2028, phase-outs occur as follows:
- Single / HOH: Phase-out begins at AGI of $100,000; fully phased out at $120,000.
- Married Filing Jointly: Phase-out begins at AGI of $200,000; fully phased out at $240,000.
- Married Filing Separately: Phase-out begins at AGI of $100,000; fully phased out at $120,000.
This ensures that the benefit is targeted at middle- and lower-income seniors rather than high-income households.
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🔎 Why This Matters for Seniors’ Tax Planning
The seniors’ bonus deduction can significantly reduce taxable income, especially when combined with other senior tax benefits. However, taxpayers should monitor their Adjusted Gross Income (AGI) to avoid losing eligibility due to phase-out thresholds.
Seniors should also compare whether itemized deductions provide more tax savings versus the standard deduction with the bonus added.
