Tax season is fast approaching and several tax policy changes impacting older Americans will be in effect when seniors go to file their returns.
The enactment of Republicans' One Big Beautiful Bill Act (OBBBA) last year revised a number of tax policies, including some provisions that the IRS is implementing for the 2025 tax year, for which Americans will begin filing their tax returns beginning on Jan. 26.
Among the new tax provisions that will impact seniors is a bonus deduction for seniors age 65 and older that can be claimed in addition to the standard deduction.
"In addition to the existing standard deduction, filers who are age 65 and older can qualify for a new senior bonus deduction of up to $6,000 for individuals and $12,000 for married couples," said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer. "This deduction is targeted to lower- and middle-income retirees and will help tens of millions keep more of their income."
"With ongoing anxiety around cost of living and kitchen table budget issues, this kind of relief can make a critical difference for folks trying to make ends meet," LeaMond added.