One Big Beautiful Bill Act – New Senior Tax Deduction

New Senior Tax Deduction (2025–2028)

Starting in 2025 and lasting through 2028, a new tax rule will help most seniors keep more of their money

The deduction can help many seniors lower their taxable income and may reduce or even eliminate the federal taxes they owe on their Social Security benefits.

But the actual tax rules for Social Security benefits haven’t changed — the taxability thresholds and rules remain the same, only the deduction changes how much taxable income seniors will report.

If you are 65 years old or older, you may qualify for a $6,000 tax deduction.

You must turn 65 by the end of the year to be eligible.

The deduction is based on income and may be reduced if your income is higher:

• Up to $75,000 for (Single or (HOH) = Heads of household
• Up to $150,000 for (MFJ) = Married Filing Joint