OVER AGE 65
What’s new: Seniors get a $6,000 bonus deduction that will allow many to reduce or avoid taxes on Social Security benefits by bringing their income below levels that trigger taxation of those benefits. How it works: Effective for tax years 2025 through 2028, individuals who are 65 or older may claim a deduction of $6,000 from their taxable income ($12,000 for married couples when both spouses qualify). The deduction is available whether you take the standard deduction or itemize on your tax returns. Requirements: A modified adjusted
gross income (MAGI) of $75,000 or less (individuals) or $150,000 or less (married couples filing jointly). The
maximum deduction starts phasing out by six cents for every dollar over those thresholds and until it is limited once your MAGI reaches $175,000 (individuals) or $250,000 (married filing jointly).
What to do: Older adults should determine whether to keep their income within these limits or at least consider forgoing extra income from work or retirement withdrawals to stay within the cap and take the $6,000 deduction