$6,000 'Bonus' Tax Deduction Approved for Those Age 65 and Older
Trump’s ‘big bill’ contains a larger 2025 bonus tax deduction for older adults. How will it work?
Republicans in Congress have approved a $6,000 “bonus deduction” for those over age 65 in President Trump’s signature tax and spending bill, dubbed the "One Big Beautiful Bill" (OBBB). Trump signed the OBBB into law on July 4.
The new $6,000 deduction will be available to individuals age 65 and older, with eligibility set at $75,000 in income for single filers and $150,000 for couples, and phasing above those levels.
But the provision is temporary. It will only be available from 2025 through 2028 and will supplement, but not replace, the existing extra standard deduction already available to older adults.
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Here’s more of what you need to know.
Tax bill targets over 65 tax relief with $6,000 deduction
Currently, the U.S. tax code provides an additional standard deduction for those 65 and older, which stacks on top of the regular standard deduction.
- As Kiplinger has reported, for the 2025 tax year (returns filed in early 2026), a single filer age 65 or older can claim an extra $2,000.
- Married couples filing jointly can add $1,600 for each spouse over 65.
- For example, a married couple both over 65 would now receive a total standard deduction of $34,700 ($31,500 base plus $3,200 extra for age), according to changes in the OBBBA.
Then, the OBBB's new “bonus” deduction would pile on top of those amounts.
So, for example, under the legislation, a single eligible taxpayer would be able to deduct a total of $23,750 (updated $15,750 standard + $2,000 age-based + $6,000 bonus), while a qualifying couple would potentially deduct over $46,700 if both are eligible (65+).
Lawmakers say the layered approach shields more taxable income and would reduce the federal tax bill for many retirees.
Note: The full deduction will be available to those with modified adjusted gross income (MAGI) up to $75,000 (single filers) and $150,000 (joint filers), then phases out above those limits, and completely phases out at $175,000 (single filers) and $250,000 (joint).
In a summary released by the Senate Finance Committee, the enhanced deduction is described as “slashing the tax burden” of “millions of low and middle-income seniors.”
House Ways and Means Committee Chairman Jason Smith (R-Mo.) said in a statement: “Republicans are keeping President Trump’s promise to help seniors afford the cost of living through an expanded senior deduction.”
Ending taxes on Social Security benefits?
Notably, Trump’s “big, beautiful bill” doesn't include any direct cuts to taxes on Social Security benefits.
During his 2024 presidential campaign, in several rallies, interviews, and social media posts, then-candidate Trump assured older adults that “SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!”
Trump repeated his pledge not to tax Social Security benefits in his 2025 State of the Union address after being elected for his second term.
However, for reasons likely related to both Senate reconciliation rules and revenue impact concerns, lawmakers chose to use the enhanced deduction as a way to provide financial relief to retirees without modifying the Social Security program.
Note: Under the Senate’s “Byrd rule,” adjustments to Social Security benefits, eligibility, or the program’s structure must go through the standard legislative process, which typically requires 60 votes in the U.S. Senate.
For more information, see No SS Tax Changes in Trump's 'Big Bill'.
Who benefits most?
The impact of the so-called “bonus deduction” would vary depending on a retiree’s income and tax situation.
Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, told CNBC that “a median-income retiree earning up to $50,000 a year might see a tax cut of just under $500 annually under the House plan.”
*Republicans in the House initially proposed a more modest $4,000 bonus deduction for those age 65 and older.
It stands to reason that the larger $6,000 deduction would increase the estimated benefit.
However, data suggest the deduction would be most beneficial to those who have enough taxable income to take advantage of it.
- Those age 65 or older with very low incomes, many of whom already pay little or no federal tax, might see little or no benefit, since deductions only reduce taxable income, not tax owed directly.
- Some policy analysts note that refundable tax credits or other direct assistance might better serve older adults with the lowest incomes.
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