Older Americans & Retirement

A new federal income‑tax deduction of up to $6,000 per person for Americans 65 and older takes effect for 2025 tax returns, which the IRS will begin accepting on January 26, 2026. The deduction, created in the Republican‑backed "One Big Beautiful Bill" tax law, is available on top of the standard deduction and an existing $2,000 senior deduction, and can be claimed whether taxpayers itemize or not. Single filers 65+ with modified adjusted gross income under $75,000 qualify for the full $6,000, while married couples filing jointly can get up to $12,000 if their income is below $175,000, with the benefit phasing down and disappearing above $175,000 and $250,000 respectively. AARP, citing White House Council of Economic Advisers estimates, says the average eligible senior could see about $670 in tax savings, and those in the 22% bracket could save up to $1,320 per person, but warns many retirees may miss out if they are unaware of the new rule. The deduction does not exempt Social Security from taxation, but it lowers taxable income overall at a time when seniors report struggling with higher costs for food, medicine and other basics.