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.

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