Categories: WORLD

How to get an extra $6,000 in “Premium Bonus” this tax season? Who is qualified?

The Big Beauty Act allows taxpayer People aged 65 and over can claim an additional $6,000 in deductions without itemizing deductions. This deduction will be implemented for the 2025 tax year (when returns are filed in 2026) and is in addition to the standard additional deduction for seniors and blind individuals. Additionally, it applies to individuals and allows married couples filing jointly to claim up to a total of $12,000. The “extra” deduction for seniors expires at the end of fiscal year 2028.

Starting in 2025, seniors 65 and older can apply for a new $6,000 credit in addition to existing exemptions. (Associated Press)

Also read: February 11 Social Security payments: Here’s who got a payment and who didn’t

Who is eligible for the new tax breaks?

To qualify for the new senior citizen deduction, you must be 65 or older by December 31, 2025 and file as a single taxpayer, head of household, surviving spouse, or as a married couple filing jointly. This deduction is not available to married couples filing separately. However, there is an income threshold. For individual filers, the deduction begins to phase out if your modified adjusted gross income (MAGI) exceeds $75,000 and is completely eliminated at $175,000.

For married couples filing jointly, the deduction begins to taper off at $150,000 and is eliminated entirely at $250,000.

For solo use taxpayerthe maximum deduction is $6,000, while the maximum deduction for joint filers is $12,000.

Also read: Social Security Alert: Retirees Will Soon Face $460 Monthly Pay Cuts? this is what we know

What is the new senior tax credit?

Additional tax benefits available to seniors do not require itemized deductions and can be claimed directly on Form 1040 or 1040-SR.

Your date of birth is important information to provide on your tax return. Your eligibility will be automatically determined by IRS If you are 65 years of age or older. Your eligibility should be automatically recognized by trusted tax preparation software, which will then apply the deduction on your behalf.

If you file by paper, be sure to include your correct Social Security number and check the age box (65+).

Learn about the senior citizen deduction

The current exemption for seniors and the blind, which is $2,000 for single filers and $1,600 for married couples filing separately, could be supplemented by the new deduction.

For 2026 tax returns, the additional standard deduction will increase to $2,050 for single filers and $1,650 for each qualifying spouse of a married couple filing jointly.

If a person chooses not to itemize deductions, they can still claim the standard deduction, unlike these two deductions.

How does the new advanced deduction work?

For a 72-year-old individual filing with income of $70,000, the standard deduction is $15,750. They qualify for a new $6,000 deduction and the current $2,000 standard deduction for seniors. This results in a total deduction of $23,750 and taxable income of $46,250.

WEB DESK TEAM

Our team of more than 15 experienced writers brings diverse perspectives, deep research, and on-the-ground insights to deliver accurate, timely, and engaging stories. From breaking news to in-depth analysis, they are committed to credibility, clarity, and responsible journalism across every category we cover.

Recent Posts

Application and NHs channel approval process fully digitalized

NEW DELHI: People seeking access from National Highways (NH) to petrol stations, roadside facilities, industries, private properties and rest area…

19 minutes ago

Who is Manu Raju? Indian-American journalist confronts Marco Rubio on US-Iran conflict

CNN chief congressional correspondent Manu Raju under scrutiny for exchanges with U.S. secretary of state Marco Rubio at a press…

21 minutes ago

‘Huge danger’: Broad labels Pandya as England’s biggest semi-final threat

Hardik Pandya of India (AP Photo/Mahesh Kumar A.) former english tailor Stuart Broad Strong warning to England ahead of semi-final…

22 minutes ago

Fact-checking Pete Hegseth’s claim: Was Iranian warship sinking the first torpedo sinking since World War II?

U.S. Secretary of Defense Peter Heggs It was confirmed on Thursday that the U.S. submarine Torpedoed and sunk an Iranian…

47 minutes ago

IISc and Pratiksha Trust launch brain co-processor ‘Moonshot’ project

IISC Bangalore (file photo) Bangalore: indian institute of science (IISc) on Wednesday said it has launched a "moonshot" project to…

60 minutes ago

Giving birth to your next baby: US ambassador’s ‘awkward’ joke to embassy staff during Iran war; ‘If it’s a boy…’

U.S. Ambassador to Israel Mike Huckabee joked with embassy staff about what to do now that they were asked to…

1 hour ago