3 Things All Retirees Need to Know About the New Senior Tax Deduction

Core Insights - The tax season is currently active, with many individuals filing their taxes and the average refund from last year being $3,167 [1] Tax Deduction Overview - A new senior tax deduction has been introduced as part of President Trump's legislation, effective from tax year 2025 through 2028 [2] - The standard deduction for tax year 2025 is set at $15,750 for singles and $31,500 for couples filing jointly, with additional amounts for seniors [5] - Seniors aged 65 and older will receive an extra $2,000 (for singles) and $3,200 (for couples) on top of the standard deduction, plus an additional $6,000 if filing as single or $12,000 if married filing jointly [5] Eligibility Criteria - To qualify for the new deduction, individuals must be 65 years old by December 31, 2025, with income limits set at $75,000 for singles and $150,000 for married couples filing jointly [6] - The deduction amount decreases by 6% for every dollar earned above the income threshold, with full ineligibility occurring at $175,000 for singles and $250,000 for married couples [7]