New Senior Deduction Could Dramatically Raise Tax Refunds — Here’s Who Qualifies

January 17, 2026

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If you’re 65 or older, the IRS just handed you a major win. The new Senior Bonus Deduction (part of the One Big Beautiful Bill Act) lets eligible seniors deduct an extra $6,000 from their taxable income. For married couples filing jointly, that doubles to $12,000, potentially reducing your tax bill or boosting your refund. This deduction stacks on top of the standard deduction and the existing age 65+ add-on, making it one of the most generous tax breaks in recent memory. For many retirees living on fixed incomes, this could mean real relief at a time when every dollar counts. Here is what you need to know about who qualifies and how to make the most of the new deduction.

Who Qualifies for the $6,000 Senior Bonus Deduction?

To claim this deduction, you must be age 65 or older by the end of the 2025 tax year. Your adjusted gross income (AGI) must be $75,000 or less if filing single, or $150,000 or less if filing jointly. The deduction is available to both retirees and working seniors, as long as they meet the age and income thresholds. Importantly, married couples must file jointly to receive the full $12,000 benefit. Filing separately disqualifies you, though. This deduction is available for tax years 2025 through 2028, so it’s not a one-time perk.

How Much Could This Deduction Add to Your Refund?

The average senior could see an extra $670 back on their tax refund, according to AARP estimates. But those in the 22% tax bracket (roughly seniors earning between $44,000 and $75,000) could save up to $1,320 per person. That’s real money, especially when combined with other deductions like medical expenses or charitable contributions. If you’re a married couple in that bracket, your combined savings could top $2,600. The more tax you owe, the more valuable this deduction becomes.

5 Steps to Make Sure You Claim It Correctly

If you want to claim the new senior deduction, it is important that you do it correctly, or it could lead to delays in receiving your return. Here are five steps to ensure everything goes smoothly.

Check Your Age and Income: You must be 65+ and under the income cap to qualify.
File Jointly if Married: Filing separately disqualifies you from the $12,000 joint deduction.
Use the Right Form: The IRS has added this deduction to Schedule 1-A, so make sure your tax software or preparer includes it.
Keep Documentation: While you don’t need receipts to claim the deduction, keep income records in case of an audit.
File Early: The IRS starts accepting 2025 returns on January 26, 2026, and early filers tend to get faster refunds.

Why This Deduction Matters More Than Ever

Seniors are facing rising costs on everything from groceries to prescriptions. This deduction offers a rare chance to lower your taxable income without itemizing, making it accessible to most retirees. It also helps offset uncovered medical expenses, which often hit seniors hardest. With inflation still squeezing fixed incomes, every tax break counts. This isn’t just a refund boost; it’s a financial buffer when many need it most.

Don’t Miss Out: What to Do Before You File

Start by reviewing your 2025 income sources, including Social Security, pensions, part-time work, and investments. If you’re close to the income limit, consider strategies to reduce your AGI, like contributing to a traditional IRA or using Qualified Charitable Distributions (QCDs). Talk to a tax preparer who understands senior-specific deductions and the new rules under the OBBB Act. If you use tax software, double-check that it includes Schedule 1-A and prompts you for the senior deduction. A little prep now could mean a much bigger refund come spring.

This Deduction Is Too Big to Ignore

The new $6,000 senior tax deduction is one of the most impactful changes in the 2026 tax season. It’s simple to claim, widely available, and could significantly increase your refund. But like any tax break, it only helps if you know about it and file correctly. With the right planning, you can take full advantage of this opportunity for the next four years. Don’t leave money on the table. Take the time to make this deduction work for you.

Are you planning to claim the new senior deduction this year? Share your thoughts or questions in the comments.