A new tax deduction for seniors takes effect in 2026 under legislation sometimes called the "One Big Beautiful Bill." The provision offers an extra deduction of $6,000 for single filers aged 65 or older, and $12,000 for married couples where both spouses are 65 or older. This is on top of the standard deduction.
However, the benefit phases out for higher incomes. The extra deduction begins to phase out at $75,000 of adjusted gross income for singles and $150,000 for married couples filing jointly. Seniors whose income exceeds these thresholds may receive a reduced deduction or none at all.
Financial advisors recommend checking your expected income for the tax year before claiming the deduction. The change could mean significant savings for eligible retirees, but careful planning is needed to ensure qualification.