IRS-Administered $6,000 Tax Deduction Could Boost Refunds for Seniors

Older adults continue to face higher prices for prescription drugs, groceries, and basic household goods.

To help offset those rising costs, a new federal tax deduction for Americans age 65 and older could put more money back in seniors’ pockets.

According to AARP, eligible older taxpayers could see about $670 in average tax savings, with some seniors saving even more depending on income and tax bracket. Those in the 22% tax bracket could reduce their tax bill by up to $1,320 per person.

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Who Is Eligible for the New $6,000 Senior Deduction?

You may qualify if you:

• Are 65 or older by December 31, 2025

• File as single, head of household, or married filing jointly

• Do not file as married filing separately

Income Limits (MAGI)

• Single filers

  • Full deduction up to $75,000

  • Phases out gradually

  • Eliminated at $175,000

• Married filing jointly

  • Full deduction up to $150,000

  • Phases out gradually

  • Eliminated at $250,000

Maximum deduction:

• $6,000 per eligible person

• Up to $12,000 for married couples if both spouses qualify

How This Works With the Standard Deduction

The $6,000 senior deduction is separate from the standard deduction and applies in addition to it.

For the 2025 tax year, base standard deductions are:

• Single: $15,750

• Married filing jointly: $31,500

• Married filing separately: $15,750

• Head of household: $23,625

Eligible seniors also receive an existing age-based standard deduction increase, and the new $6,000 deduction further reduces taxable income.

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