New Deduction for Seniors Aged 65 and Older

Personal exemptions, suspended by the Tax Cuts and Jobs Act of 2017, were permanently eliminated by OBBB. However, a temporary new deduction for seniors ages 65 and older is in place through 2028. These taxpayers can claim a $6,000 deduction ($12,000 if filing jointly). This deduction will be phased out if adjusted gross income (AGI) exceeds $75,000 ($150,000 for joint filers) by 6% and is completely phased out when AGI is at $175,000 ($250,000)

This is the deduction that has sometimes been mis-reported as the “no tax on Social Security” deduction. The deduction will be very nice for senior taxpayers because it offsets all types of income, is available even if a taxpayer is not collecting Social Security benefits, and is available even if the taxpayer itemizes deductions.

Please contact your Boyum advisor with any questions.