New Tax Break Gives Seniors Up to $6,000 Back

Here's who qualifies for the enhanced senior deduction on 2025 tax returns

Published on Mar. 5, 2026

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A new tax deduction for many adults 65 and older has plenty of rules and requires new paperwork. The temporary "senior bonus" will enable many taxpayers 65 and older to deduct up to $6,000 in income from their federal returns, resulting in a fatter tax refund or substantial savings on their tax bill.

Why it matters

The new enhanced deduction for seniors applies whether you itemize deductions or claim the standard deduction, providing an extra boost on top of the existing extra standard deduction for older adults. This could offer financial relief to many seniors facing economic challenges.

The details

The deduction phases out for higher income seniors, starting at $75,000 in modified adjusted gross income for singles and $150,000 for joint filers. It is fully phased out at $175,000 for single filers or $250,000 for joint filers. The deduction is only available for tax years 2025 through 2028, and taxpayers must file a new Schedule 1-A to claim it.

  • The new enhanced senior deduction applies to 2025 federal income tax returns.
  • The deduction is only available for four years - 2025, 2026, 2027 and 2028.

The players

John Hishta

Senior vice president for campaigns for AARP, which supported the new enhanced senior deduction and has been working to get the word out about the new tax break.

Tom O'Saben

A tax professional who warned the new enhanced deduction for seniors could turn into a commonly missed deduction, especially for seniors who file simple returns and historically did not need additional schedules.

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What they’re saying

“There's a lack of knowledge that the deduction exists now.”

— John Hishta, Senior vice president for campaigns, AARP (Detroit Free Press)

“The enhanced senior deduction could turn into a commonly missed deduction, especially for seniors who file simple returns and historically did not need additional schedules.”

— Tom O'Saben, Tax professional (Detroit Free Press)

What’s next

Taxpayers 65 and older should be sure to file Schedule 1-A to claim the new enhanced senior deduction on their 2025 federal income tax returns.

The takeaway

The new temporary tax break for seniors could provide much-needed financial relief for older adults facing economic challenges, but it requires additional paperwork to claim. Eligible taxpayers should be sure to take advantage of this new deduction before it expires after 2028.