Senior Deduction

Author: Preston Brashers

TOPLINE:

The One Big Beautiful Bill (OBBB) provides a $6,000 tax deduction for taxpayers aged 65 and over ($12,000 in the case of married seniors).

BACKGROUND:

[if gte mso 9]> Normal 0 false false false false EN-US X-NONE X-NONE The 2017 Tax Cuts and Jobs Act (TCJA) doubled the standard deduction for tax years 2017 through 2025. OBBB made that change permanent and increased the deduction amount further, so that in 2026 non-itemizing taxpayers can take a $16,100/$32,200 (single/married joint filers) standard deduction.

In addition to the regular standard deduction, there is a long-standing provision in the tax code called the “additional standard deduction for aged and blind,” which (as of 2026) adds an additional $1,650 deduction per filer for a married filer who is aged 65 or over (or $2,050 in the case of a single filer who is aged 65 or over).

Above-the-line tax deductions (like the new senior deduction) are special deductions that can be claimed regardless of whether a taxpayer chooses to itemize or claim the standard deduction.

What OBBB Did:

• Created a new senior tax deduction of $6,000/$12,000 for single/married joint filers, for the tax years 2025 through 2028.
• Made the new senior deduction an “above-the-line” tax deduction that can be claimed both by itemizers and non-itemizers.
• Set up the tax deduction to begin phasing out for taxpayers with modified adjusted gross income of $75,000/$150,000.
• Kept in place the additional standard deduction for aged and blind.

Why It Matters?

• About 43% of America’s $6 trillion federal budget (excluding interest payments) goes to Social Security and Medicare, programs mostly benefitting seniors.
• The deduction expanded the coalition of support for the One Big Beautiful Bill, as senior citizens account for nearly a quarter of the adult population in the U.S.
• The new senior tax deduction is a $93 billion tax cut over four years, according to JCT

Where Can I Find Changes?

OBBB Section 70103; 26 U.S.C. § 151(d)(5).

BOTTOMLINE:

Age should not factor into tax liability. The unavoidable result of an advantage granted to one group based on age is a disadvantage for other groups based on age. Instead of targeting specific age groups for tax cuts, Congress should focus on reducing spending and taxes for all.

This memo is part of the One Big Beautiful Booklet, a collection of more than 60 memos that examine and summarize the major aspects of the One Big Beautiful Bill – the signature legislative achievement of President Trump and the 119th Congress.

more ob3-60 memos