What the New Senior Deduction Could Mean for You 

One of the most talked-about features of the newly passed One Big Beautiful Bill (OBBB) is the Senior Deduction. If you’re 65 or older, this provision could help reduce your taxable income in retirement.

Here’s what to know: 

A meaningful benefit: The deduction provides $6,000 per qualifying individual (up to $12,000 for married couples). That’s a significant opportunity to lower your tax burden.

Tax bracket matters: The value depends on your bracket. In a 22% bracket, for example, the deduction could mean that a married couple both over age 65 saves more than $2,600 in federal tax. If qualified for all 4 years (2025 through 2028), that could mean over $10,000 in tax savings.

Phaseouts apply: The deduction begins to phase out once modified adjusted gross income (MAGI) exceeds $75,000 for single filers and $150,000 for married couples. In practice, it’s reduced by about six cents for every dollar over these limits.

Why it matters:  Tax benefits like the Senior Deduction don’t exist in isolation. To maximize them, you’ll want to consider how they interact with your retirement income, investments, and tax strategies.

For more details, watch our recent webinar on “The One Big Beautiful Bill – Key Strategies to Improve Your Wealth and Retirement”:

WATCH HERE