$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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
Related
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
-
Walmart Plus Members Will Soon Have Their Choice Between Two Streaming Services
Discover which streaming service is coming to the platform.
-
Claiming the Standard Deduction? Here Are Ten Tax Breaks For Middle-Class Families in 2025
Tax Breaks Working middle-income Americans won’t need to itemize to claim these tax deductions and credits — if you qualify.
-
Claiming the Standard Deduction? Here Are Ten Tax Breaks For Middle-Class Families in 2025
Tax Breaks Working middle-income Americans won’t need to itemize to claim these tax deductions and credits — if you qualify.
-
Over Age 65? New $6,000 'Senior Bonus' Deduction Is Available Even If You Itemize
Tax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
-
Another State Rebels Against Trump’s New 2025 Tax Law: What Now?
State Taxes Even if states adopt tax policies in the so-called ‘big beautiful bill,’ lawmakers may have workarounds at their fingertips.
-
New Trump Tax Bill: Five Changes Homeowners Need to Know Now
Tax Changes Trump’s new tax legislation is reshaping how tax breaks for homeowners work.
-
Will You Get a ‘Surprise’ Tax Bill on Your Social Security Benefits in Retirement?
Retirement Taxes Social Security benefit payments might land you in hot water when filing 2025 taxes — here are three reasons why.
-
Social Security 2025: The Outdated Tax Rules Costing Retirees Money
Retirement Taxes Could the Social Security 90th anniversary be a good time to revisit old tax thresholds?
-
How the 2025 Child Tax Credit Rules Impact Single Parents
Tax Credits New changes to family tax credits, like the Child Tax Credit, will impact the eligibility of some households.
-
How Your 2025 Wedding Could Save You Money on Taxes
Tax Breaks There are some wedding expenses that are tax-deductible, and you don’t want to miss out on savings.