With the 2026 tax filing season fast approaching, a major new tax change for Americans age 65 and older is set to provide substantial federal income tax relief for millions of retirees and older workers.
If you are age 65 or older by Dec. 31, you can reduce your taxable income by claiming the new $6,000 senior deduction. Married couples filing jointly can claim up to $12,000 if both spouses qualify. Couples filing separately won’t be able to claim the extra deduction. It’s also available for those filing as head of household or qualifying widow(er). You also don’t need to be receiving Social Security benefits to claim it.
- A single filer at least 65 could have $23,750 in deductions after the $15,750 standard deduction, the $2,000 additional standard deduction for age, and the $6,000 new senior deduction.
- A married couple filing jointly who are both 65, or a qualifying surviving spouse, could have up to $46,700 total deduction after a $31,500 standard deduction. a $3,200 additional standard deduction for age ($1,600 per spouse), and a $12,000 new senior deduction ($6,000 per spouse).
- A married couple filing head of household at least 65 could have a total deduction of $31,625 after the $23,625 standard deduction, a $2,000 additional standard deduction for age, and a $6,000 new senior deduction.
For single filers, the deduction begins to phase out for taxpayers with a modified adjusted gross income (MAGI) above $75,000. For married couples filing jointly, the phase-out starts at $150,000. It is reduced by 6 cents for every $1 of income above those thresholds and completely phases out at $175,000 for singles and $250,000 for couples.
- Calculate the excess income: $80,000 - $75,000 = $5,000
- Multiply the excess by the phase-out rate: $5,000 × 0.06 = $300
- Subtract this amount from the full deduction: $6,000 - $300 = $5,700
You can claim the new $6,000 senior tax deduction even if you itemize your deductions, since it’s available whether you choose the standard deduction or itemize.
However, this deduction isn't applied automatically; you must actively claim it, typically by completing the new Schedule 1-A for Form 1040, which covers the senior deduction and other new provisions from OBBBA.
Itemizing may make sense if you have high medical expenses, large charitable contributions, or significant mortgage interest or property taxes, states H&R Block.
Many Social Security recipients with lower incomes may not need to file taxes or pay federal tax on their benefits. If your adjusted gross income, tax-exempt interest, and half of your Social Security benefits all combined is below $25,000 for single filers or $32,000 for joint filers, your Social Security benefits are not taxed.
If your income exceeds these thresholds, a portion of your benefits becomes taxable: up to 50 percent for moderate incomes and as much as 85 percent for higher incomes.
Additional Standard Deduction: If you are single or file as Head of Household, you can claim up to $2,000 with the additional standard deduction. Unlike the new senior tax deduction, this extra amount is only available if you opt for the standard deduction, not if you itemize your deductions.
Credit for the Elderly or Disabled: This tax credit is worth up to $7,500 and is adjusted based on your pension or annuity payments. It is available to taxpayers age 65 or older, as well as those who are permanently disabled.
Qualified Charitable Distributions: If you are 70½ or older, you can transfer up to $108,000 directly from your IRA to a qualified charity tax-free. This transfer counts toward your Required Minimum Distribution and can lower your taxable income, potentially helping you avoid phase-out limits for other deductions.