Will a Higher Income Limit Your Senior Deduction?

Starting in 2025, taxpayers 65 and older can claim the new Senior Deduction—but higher income can reduce it.

Here’s how the phaseout works:

Income limits for the deduction:

• $75,000 for single filers

• $150,000 for joint filers

Once your modified adjusted gross income (MAGI) goes over these limits, the deduction is reduced by 6% of the amount over the threshold.

Example:

A couple, both 65+, has $160,000 MAGI in 2025.

Deduction = $12,000 – (6% × $10,000 over the limit) = $11,400

Why this matters:

• The deduction stacks on top of your standard deduction.

• Even if your senior deduction is partially reduced, it could still create meaningful tax savings.

• Estimating your MAGI ahead of tax season can help you plan income or deductions to avoid losing part of the benefit.

Tip:

Check your income level to see if you will receive the full deduction or a reduced amount.

Each week, I share a clear, bite-sized tax insight straight from my continuing education so you can stay informed without sifting through tax changes.

Next week we discuss the new overtime deduction.

Thanks for reading,

Brandy Sparkman, EA

I’ll keep learning so you can stay focused on what you do best.

See you next week for another Tax Minute.