New Enhanced Senior Deduction for 2025

[RWG1950]

Does this new $6-K added deduction (subject to the income phaseout) apply to each spouse on a joint return ?

[kathyc2]

Yes, as long as they both are 65 or older.

[Snaggletooth]

Been to a seminar and didn't get a straight answer: Is this $6,000 (pr $12,000) deduction in the form of an "adjustment" or is it added to the "standard deduction/Sch A"?

The technicality of how this works is important -- the former would affect the AGI as well as create an influence of the phase-out, similar to a "circular reference" in Excel.

[New York Enrolled Agent]

Been to a seminar and didn't get a straight answer: Is this $6,000 (pr $12,000) deduction in the form of an "adjustment" or is it added to the "standard deduction/Sch A"?

The technicality of how this works is important -- the former would affect the AGI as well as create an influence of the phase-out, similar to a "circular reference" in Excel.

It’s the same as your section 170(p) deduction - it’s below-the-line additional deduction ( except this one starts in 2025)

[FEDUKE404]

The way I view it is that the senior adjustment ($6k or $12k) is an ADDITION to either the standard deduction amount or to the itemized deduction amount.

It has ZERO impact on AGI / MAGI that would change allowable medical deductions or IRMAA considerations.

The income phase out levels are reasonably low. . .meaning that many moderate income individuals will see little or no reduction in their taxable income due to this issue.

I've been playing around with some projected client numbers for 2025. Enter some income, and the $6k/$12k is there. Enter some more income (RMDs, interest, dividends) and the numbers. . .just disappear.

[kathyc2]

The way I view it is that the senior adjustment ($6k or $12k) is an ADDITION to either the standard deduction amount or to the itemized deduction amount.

It has ZERO impact on AGI / MAGI that would change allowable medical deductions or IRMAA considerations.

The income phase out levels are reasonably low. . .meaning that many moderate income individuals will see little or no reduction in their taxable income due to this issue.

I've been playing around with some projected client numbers for 2025. Enter some income, and the $6k/$12k is there. Enter some more income (RMDs, interest, dividends) and the numbers. . .just disappear.

Phase outs start at 75/150 but don't completely go away until 175/350.

[terryats]

This is from IRS. Link: https://www.irs.gov/newsroom/one-big...ns-and-seniors

Deduction for Seniors

• New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
  • The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
  • Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
• Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
  • Taxpayers must:
    • include the Social Security Number of the qualifying individual(s) on the return, and
    • file jointly if married, to claim the deduction.