Good news for older adults: even though the IRS hasn’t changed the rules for how Social Security benefits are taxed, a new senior deduction makes it less likely that most retirees will owe federal tax on their benefits starting in 2025. You may still need to file a tax return if you meet other income requirements, but this new deduction could substantially lower — or even eliminate — what you owe.

The 2025 Tax Act allows eligible older adults to claim a temporary deduction designed to offset taxes on Social Security. The deduction is worth up to $6,000 for single filers and up to $12,000 for couples filing jointly, helping older adults keep more of their income.

How the New Senior Deduction Works (2025–2028):

Who’s Eligible

• Anyone 65 or older (and spouses filing jointly who are 65+).

What You Can Deduct

• $6,000 for single filers
• $12,000 for married couples filing jointly
  This amount directly reduces your taxable income, lowering your overall tax bill.

Income Phase‑Out

• The deduction begins to shrink once your Adjusted Gross Income (AGI) exceeds:
• $75,000 for single filers
• $150,000 for joint filers
  Higher-income retirees may still owe some tax on their benefits, but the new deduction still provides meaningful relief.

How to Claim It

• It’s simple — just check the “65 or older” box on your 2025 Form 1040 or 1040‑SR.
• The IRS will automatically apply the deduction.

For more details straight from the source, visit the IRS at: https://www.irs.gov/