Seniors and Retirees Age 65 and Older

Older Americans may also benefit from a new temporary senior bonus deduction.

Eligible taxpayers age 65 or older may qualify for additional deductions if their modified adjusted gross income (MAGI) falls below:

• $250,000 for married couples filing jointly
• $175,000 for single filers

For retirees living on Social Security income, pensions, and retirement account withdrawals, this deduction could significantly reduce taxable income—resulting in either a larger refund or a smaller tax bill.

This change may also improve retirement tax planning, especially for those managing required minimum distributions (RMDs) from IRAs or 401(k)s.