If you’re 65 or older, you may get a new tax break for the next few years. The tax law passed in July 2025 created an extra deduction of up to $6,000 per person for older taxpayers.
It’s a helpful change. But there are income limits and a few rules that catch people off guard. Here’s what you should know.
The basics
- How much: Up to $6,000 per person age 65 or older by December 31 of the tax year. If you’re married and both of you are 65 or older, that’s up to $12,000.
- How long: Tax years 2025 through 2028. After that, it ends unless Congress extends it.
- Itemize or not: You get it either way. It doesn’t matter whether you take the standard deduction or itemize.
- On top of what you already get: Taxpayers 65 and older already get a larger standard deduction. This new deduction is added to that. It doesn’t replace it.
Income limits
The deduction starts to shrink once your income passes a certain level. For every dollar over the limit, you lose 6 cents of the deduction.
| Filing status | Deduction starts shrinking | Deduction is gone |
| Single | $75,000 | $175,000 |
| Married filing jointly | $150,000 | $250,000 |
Income here means modified adjusted gross income (MAGI). For most retirees, that’s close to the adjusted gross income on your tax return.
An example: A married couple, both 65 or older, has $200,000 of income. They’re $50,000 over the limit. Each spouse’s $6,000 drops by $3,000. So instead of $12,000, they can deduct $6,000.
Who qualifies
A few rules people miss:
- You don’t need to be on Social Security. If you’re 66, still working, and waiting to claim benefits, you still qualify.
- Married couples must file jointly. If you file separately, you can’t take it.
- You need a valid Social Security number on your tax return.
Why your income timing matters
If your income falls in the range where the deduction shrinks, extra income costs a little more in tax than you might expect. That can change how you approach a few common decisions.
- Roth conversions. Converting in a year when you’re in the shrinking range reduces your deduction too. Smaller conversions, or spreading them out, may make more sense through 2028.
- Charitable giving from an IRA. If you’re 70½ or older, giving directly from your IRA to charity keeps that money out of your income. That can help protect the deduction.
- Selling investments or taking IRA withdrawals. A large one-time sale or withdrawal can wipe out the deduction for that year. Spreading income over several years may let you keep more of it.
- Annuity withdrawals. Taxable gains from a non-retirement annuity count as income here too.
If your income is well above $250,000 (married) or $175,000 (single), the deduction isn’t available, so it won’t change your plans.
The bottom line
For many retirees, this is a real tax break for the next four years. Whether you get the full amount depends on your income, and that’s something you can often plan around.
If you’re 65 or older, or will be soon, it’s worth looking at how this fits your tax and retirement plans. Talk with your tax professional, or reach out to us if you’d like to review your situation.
This information reflects the law as of mid-2026 and is subject to change. It is general in nature and is not tax or legal advice. Please consult your tax professional about your situation.