Senior Bonus Deduction
Tax Glossary Term
Definition
The senior bonus deduction is a new above-the-line deduction of $6,000 available to taxpayers age 65 or older, created by the One Big Beautiful Bill Act (OBBBA). It is claimed on Schedule 1-A and works on top of the standard deduction ($16,100 for single filers in 2026) and the existing age-65 additional standard deduction ($2,050 for single/HoH, $1,650 for married filers). Married filing separately filers cannot claim it. A Social Security Number is required — ITIN filers are ineligible. The deduction phases out at a rate of 6.0% of MAGI above $75,000 for single and head-of-household filers, or $150,000 for married filing jointly. The deduction is per qualifying taxpayer, meaning both spouses on a joint return can each claim the full $6,000 if both are age 65 or older (each subject to their own phase-out calculation). The senior bonus deduction is effective for tax years 2025 through 2028.
Example
Single filer, age 68, MAGI: $90,000
Phase-out threshold (single): $75,000
MAGI excess: $90,000 − $75,000 = $15,000
Phase-out reduction: 6.0% × $15,000 = $900
Deduction: $6,000 − $900 = $5,100
Tax savings at 22.0% bracket: $5,100 × 22.0% = $1,122