Ask the Editor, July 18: Questions on the $6,000 Senior Deduction

Each week, in our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter Editor, answers questions on topics submitted by readers. This week, she’s looking at questions on the new $6,000 deduction for taxpayers 65 and older. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

Question: I am retired and receive monthly Social Security benefits. I heard that the newly enacted so-called “One Big Beautiful Bill” (OBBB) eliminates federal income tax on Social Security benefits. Is that accurate?

Joy Taylor: No, the OBBB doesn’t make Social Security benefits fully tax-free. Many Social Security recipients now pay federal income tax on up to 85% of their benefits, depending on their provisional income. President Trump promised to end the tax. But the process that Republican lawmakers used to pass the OBBB while circumventing the 60-vote filibuster rule in the Senate didn’t allow this income tax change to Social Security benefits. So lawmakers found an alternative means of tax relief for seniors in the OBBB.

There is now a new senior tax deduction of $6,000 per filer age 65 and older. Married couples with both spouses 65 and older can deduct $12,000 on a joint return. This deduction is available to taxpayers who claim the standard deduction and to those who itemize on Schedule A of the Form 1040 or 1040-SR. This deduction is temporary, first taking effect on 2025 tax returns filed next year, and ending after 2028.

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Not every senior will qualify. The deduction begins to phase out at modified adjusted gross incomes (or modified AGIs) above $150,000 on joint returns and $75,000 on single and head-of-household returns. The deduction is fully phased out once modified AGI reaches $175,000 for single and head-of-household filers and $250,000 for joint filers. Also, each eligible spouse must have a Social Security number to claim this write-off.

2. How to Itemize on Schedule A

Question: I itemize deductions on Schedule A of the Form 1040 every year instead of claiming standard deductions. Can I take the $6,000 senior deduction even through I itemize?

Joy Taylor: Yes, the deduction is available to taxpayers who claim the standard deduction and to those who itemize on Schedule A of the Form 1040 or 1040-SR. I am guessing that the IRS will add another line to the 2025 Form 1040 after the line for standard deductions to account for this new senior deduction.

Question: My wife and I are both retired federal employees, and we are older than 65. We receive a Civil Service Retirement System pension, but we do not receive Social Security benefits. Can we claim the $6,000 senior deduction on our 2025 Form 1040 even though we do not get Social Security benefits?

Joy Taylor: Yes, you would be able to claim the $6,000 senior deduction (per spouse) on your 2025 Form 1040, subject to the modified AGI phaseouts discussed in Question 1. Since you are filing a joint return with your wife, and you are both 65 or older, you can deduct $12,000. You do not have to receive Social Security benefits to take the deduction.

4. Modified Adjusted Gross Income

Question: I am married and file a joint tax return. I know that the $6,000 senior deduction for filers age 65 and older begins to phase out at modified adjusted gross incomes over $150,000 for joint filers. What is modified adjusted gross income?

Joy Taylor: Modified adjusted gross income (or modified AGI) is often used by the IRS to determine your eligibility for certain tax benefits or tax breaks or to determine whether you are subject to surtaxes or surcharges. True to the complexity of the federal tax code, the definition of modified AGI often differs, depending on what it is used for.

To calculate modified AGI for purposes of the income threshold for taking the $6,000 senior deduction, you begin with your adjusted gross income on line 11 of your Form 1040 and add any foreign earned income exclusion, foreign housing exclusion, and any amounts excluded from gross income because they were received from sources in Puerto Rico or American Samoa.

About Ask the Editor, Tax Edition

Subscribers of The Kiplinger Tax Letter and The Kiplinger Letter can ask Joy questions about tax topics. You'll find full details of how to submit questions in The Kiplinger Tax Letter and The Kiplinger Letter. (Subscribe to The Kiplinger Tax Letter or The Kiplinger Letter.)

We have already received many questions from readers on tax changes in the OBBB. In this column, we have addressed questions on the new $6,000 deduction for taxpayers who are age 65 and older. We will answer more queries on the OBBB in future Ask the Editor round-ups. So keep those questions coming!

Disclaimer

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our editors and experts, in this Q&A series, are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to, constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial or tax advisor regarding any questions you may have in relation to the matters discussed in this article.