The Expanded Senior Deduction (2025-2028)
A key feature of the OBBB Act is a temporary, powerful new tax break for Americans aged 65 and over. Use this tool to see how it could reduce your taxes.
Your Personal Impact Calculator
Enter your details to calculate your potential deduction for the 2025 tax year.
Your Allowable Deduction:
$6,000
This is an "above-the-line" deduction, meaning it reduces your Adjusted Gross Income (AGI) and can be taken even if you don't itemize.
How It Works: The Rules
Deduction Amount
Up to **$6,000** per qualifying person aged 65+, for a potential **$12,000** for a married couple.
Income Phase-Out
The deduction begins to decrease at **$75k MAGI (Single)** or **$150k MAGI (Married)**.
Temporary Window
This deduction is only available for tax years **2025 through 2028** and expires afterward.
Visualizing the Phase-Out
Use the slider to see how your deduction amount changes as your income increases.
Tax Savings Scenarios
See how the deduction impacts different retiree profiles. These examples show the combined effect on income tax and the taxability of Social Security benefits.
Tax Planning Strategies (2025-2028)
If your income is near the phase-out thresholds, consider strategies to reduce your MAGI and maximize the deduction. This includes making **Qualified Charitable Distributions (QCDs)** from an IRA, **tax-loss harvesting** in your investment portfolio, or strategically timing income recognition.
Since the deduction is temporary, you may benefit from shifting income. Consider delaying large **Roth conversions** until after 2028 to keep your MAGI low during the deduction window. If you have flexibility, you could take smaller IRA withdrawals from 2025-2028 and larger ones later.
This deduction expires on Dec 31, 2028. Your long-term financial plan should account for this "tax cliff." The tax landscape will be less favorable for seniors starting in 2029, so it's crucial to model this change in your retirement projections.
