Senior Bonus Deduction Calculator
Check the new OBBBA $6,000 senior bonus deduction ($12,000 for married couples when both spouses are 65+). The 6% MAGI phase-out above $75,000 single / $150,000 joint is included. Good for tax years 2025 through 2028.
Filing Status
Married Filing Separately doesn't qualify for the senior bonus under IRC § 151(d)(5)(C)(v).
Your Age
You qualify for the bonus in the tax year you turn 65.
Modified Adjusted Gross Income
Your AGI plus any foreign earned income (§ 911), Puerto Rico (§ 933), or U.S. territory income (§ 931). For most retirees, AGI works just fine.
Your Federal Marginal Tax Bracket
Pick the bracket your last dollar of income falls in. Not sure? Use our Tax Bracket Calculator.
Estimates only. The senior bonus deduction is a temporary provision of the One Big Beautiful Bill Act (P.L. 119-21), effective for tax years 2025–2028. Talk to a tax professional about your specific situation.
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What is the OBBBA Senior Bonus Deduction?
The senior bonus deduction is a new federal tax break from the One Big Beautiful Bill Act (Public Law 119-21, § 70103), signed into law on July 4, 2025, and codified as IRC § 151(d)(5)(C). If you're 65 or older, you can deduct up to $6,000 per qualified person ($12,000 for a married couple where both spouses are 65+).
The bonus is an above-the-line deduction claimed on the new Schedule 1-A, so it cuts your adjusted gross income directly. You can take it whether you use the regular standard deduction or itemize on Schedule A. It also stacks on top of the existing § 63(c)(7) age-65 additional standard deduction, which means qualifying seniors get both.
This one is temporary. It only applies to tax years beginning before January 1, 2029, which covers 2025, 2026, 2027, and 2028 returns. Unless Congress extends it, the deduction goes away for 2029.
How the Phase-Out Works
Higher earners see the bonus shrink as MAGI rises. The base bonus drops by 6 cents for every $1 of MAGI above the threshold:
- Single, Head of Household, Qualifying Surviving Spouse: threshold = $75,000
- Married Filing Jointly: threshold = $150,000
- Married Filing Separately: ineligible at any income level
The reduction is capped at the base bonus (it can't go negative), so the deduction is fully phased out at these MAGI levels:
- Single / HoH / QSS, one senior: $175,000 (= $75k + $6k/0.06)
- MFJ, one spouse qualifying: $250,000 (= $150k + $6k/0.06)
- MFJ, both spouses qualifying: $350,000 (= $150k + $12k/0.06)
Worked Examples
Example 1, single filer, age 68, MAGI $90,000: MAGI is $15,000 over the $75k threshold. Phase-out = $15,000 × 6% = $900. Final bonus = $6,000 − $900 = $5,100. At a 22% marginal rate, that's about $1,122 in federal tax savings.
Example 2, MFJ, both spouses 65+, MAGI $200,000: Base bonus = $12,000. MAGI is $50,000 over the $150k threshold. Phase-out = $50,000 × 6% = $3,000. Final bonus = $12,000 − $3,000 = $9,000. At a 24% marginal rate, that's roughly $2,160 saved.
Example 3, MFJ, both 65+, MAGI $360,000: Phase-out goes past the $12,000 cap, so the final bonus is $0. No savings at this income level.
Senior Bonus Deduction by Income Level
The table below shows the OBBBA senior bonus and estimated federal tax savings for a single filer age 65+ at the 22% marginal rate. Notice how the phase-out eats into the deduction dollar-for-dollar once MAGI crosses $75,000.
| MAGI | Excess over $75k | Phase-out reduction | Final senior bonus | Savings @ 22% |
|---|---|---|---|---|
| $0 | $0 | $0 | $6,000 | $1,320 |
| $50,000 | $0 | $0 | $6,000 | $1,320 |
| $75,000 | $0 | $0 | $6,000 | $1,320 |
| $90,000 | $15,000 | $900 | $5,100 | $1,122 |
| $100,000 | $25,000 | $1,500 | $4,500 | $990 |
| $120,000 | $45,000 | $2,700 | $3,300 | $726 |
| $140,000 | $65,000 | $3,900 | $2,100 | $462 |
| $150,000 | $75,000 | $4,500 | $1,500 | $330 |
| $160,000 | $85,000 | $5,100 | $900 | $198 |
| $170,000 | $95,000 | $5,700 | $300 | $66 |
| $175,000 | $100,000 | $6,000 | $0 | $0 |
| $200,000+ | $125,000+ | Capped at $6,000 | $0 | $0 |
Married Filing Jointly (both spouses 65+)
| MAGI | Excess over $150k | Phase-out reduction | Final senior bonus | Savings @ 22% |
|---|---|---|---|---|
| $100,000 | $0 | $0 | $12,000 | $2,640 |
| $150,000 | $0 | $0 | $12,000 | $2,640 |
| $200,000 | $50,000 | $3,000 | $9,000 | $1,980 |
| $250,000 | $100,000 | $6,000 | $6,000 | $1,320 |
| $300,000 | $150,000 | $9,000 | $3,000 | $660 |
| $350,000 | $200,000 | $12,000 | $0 | $0 |
| $360,000+ | $210,000+ | Capped at $12,000 | $0 | $0 |
Planning for 2025–2028
The four-year window opens up some real planning moves for retirees near the phase-out thresholds:
- Time Roth conversions. A big Roth conversion can spike your MAGI and wipe out the bonus. Spread conversions across multiple years, or skip them in years you'd lose the deduction.
- Delay Social Security. Waiting to claim benefits until age 70 keeps MAGI lower during the early retirement years when the bonus matters most.
- Use the 65 to 72 low-MAGI window. SECURE 2.0 pushed RMDs to age 73, so seniors between 65 and 72 often have a natural low-income window that pairs nicely with the bonus.
- Bunch charitable contributions. In years you itemize (maybe via a donor-advised fund), the senior bonus still applies on top, so you get both benefits.
- Harvest capital losses. Realized losses reduce MAGI and can keep the bonus from phasing out.
- Check your state rules. Some states decouple from federal deductions, so the senior bonus may not flow through to your state return.
Related planning tools: Tax Bracket Calculator, Roth IRA Conversion Calculator, Itemized vs. Standard Deduction Calculator, and Social Security Tax Calculator.
Frequently Asked Questions
Common questions about the OBBBA senior bonus deduction
What is the OBBBA senior bonus deduction?
It's a new temporary federal deduction from the One Big Beautiful Bill Act (Public Law 119-21, § 70103). If you're 65 or older, you can deduct up to $6,000 ($12,000 for a married couple where both are 65+). It's codified as IRC § 151(d)(5)(C) and applies to tax years 2025 through 2028 only. You claim it on new Schedule 1-A, and it stacks on top of the regular standard deduction. You can also take it if you itemize.
Who qualifies for the $6,000 senior deduction?
You qualify if you turn 65 on or before December 31 of the tax year, have a valid Social Security number on the return, and don't file as Married Filing Separately. Non-resident aliens and anyone claimed as a dependent are out. Your MAGI also has to fall below the full-phase-out ceiling described below.
How does the phase-out work for high earners?
Your base $6,000 (or $12,000 for MFJ with two qualifying spouses) is reduced by 6% of MAGI above $75,000 for singles / HoH / QSS, or $150,000 for MFJ. Single filers lose the deduction entirely at MAGI $175,000, and MFJ couples with one qualifying spouse lose it at $250,000 (or at $350,000 if both spouses qualify).
Can I claim this if I itemize deductions?
Yes. Unlike the regular standard deduction, the senior bonus is an above-the-line deduction on Schedule 1-A that reduces your AGI directly. You get it whether you take the standard deduction or itemize on Schedule A. It's one of the more widely accessible senior tax breaks in years.
When does the senior bonus deduction expire?
It sunsets after tax year 2028. The statute at § 151(d)(5)(C)(i) specifies "a taxable year beginning before January 1, 2029." Unless Congress extends it, 2029 returns won't include the bonus. Plan any Roth conversions or income-timing moves with the four-year window in mind.
What is Modified AGI for this deduction?
MAGI is your regular AGI plus any foreign earned income exclusion (IRC § 911), Puerto Rico-source exclusion (§ 933), or U.S. territory possessions exclusion (§ 931). For most U.S. seniors, MAGI just equals AGI. Non-taxable Social Security benefits are not added back. Only the taxable portion of Social Security (already in AGI) counts.
Do both spouses need to be 65+ to get the full $12,000?
Yes. Each $6,000 slot is per qualified person. If one spouse is 66 and the other is 60 on a joint return, you get $6,000 (not $12,000), and the $150,000 phase-out threshold still applies. Once the younger spouse turns 65, the couple can claim the full $12,000 in that tax year.
How much tax will this actually save me?
Your real savings are the final deduction amount times your marginal federal tax bracket. A single filer with $80,000 MAGI in the 22% bracket would see the bonus reduced by $300 (6% of $5,000 excess) to $5,700, saving roughly $1,254 in federal tax. An MFJ couple at $140,000 MAGI with both spouses 65+ would get the full $12,000 and save $2,880 at the 24% marginal rate.
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