Legislation passed with a $3.4 trillion price tag introduces substantial changes for retirement planning, particularly for those aged 65 and above. Starting from 2025, seniors can claim an additional $6,000 deduction, resulting in stacking total deductions to $46,700 for couples. This represents notable tax relief that acknowledges retirement financial realities. However, income limits exist, with the new deduction phasing out for modified adjusted gross incomes over $75,000 for singles and $150,000 for married couples. Implementation details are still being clarified by the Treasury Department.
Starting with your 2025 tax returns, if you're 65 or older, you can claim an additional $6,000 deduction ($12,000 for married couples) on top of the standard deduction and the existing age-65+ extra standard deduction. This isn't just another small adjustment; it's substantial tax relief that recognizes the financial realities of retirement.
To be clear, all three of these 'regular' deductions can be stacked on top of one another, regardless of whether you itemize. Let's break this down for 2025 for couples filing together and claiming the standard deduction.
Total standard deduction age 65+ in 2025: $46,700. However, there are income limits to consider. The deduction phases out if your modified adjusted gross income exceeds $75,000 for singles or $150,000 for married couples filing jointly, disappearing entirely.
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