Brenda Lyle – Florida Today
By Brenda Lyle
Q: Are there New Tax Breaks for Seniors?
A: Yes! There are new tax breaks for seniors beginning with the 2025 tax year (returns filed in 2026), along with existing benefits that continue to help reduce taxable income.
One of the most significant updates is a new senior bonus deduction for taxpayers aged 65 and older. Starting in 2025, eligible individuals may qualify for an additional $6,000 deduction! Married couples filing jointly can receive up to $12,000 if both spouses are 65 or older. This deduction is available whether you itemize or not. The full amount is generally available to single filers with modified adjusted gross income up to $75,000 and married couples filing jointly up to $150,000. By lowering taxable income, this deduction could reduce your overall tax bill and may even lessen or eliminate taxes owed on Social Security benefits for some seniors.
In addition to the new bonus deduction, taxpayers aged 65 and older continue to benefit from a higher standard deduction than younger filers. In addition to increases in the standard deduction due to inflation adjustments, seniors automatically receive an additional amount simply because of age.
The new law, however, doesn’t eliminate taxes on Social Security benefits –which may still be taxable depending on your total income from all sources. But the combination of the higher standard deduction and the new senior bonus deduction may reduce taxable income enough that some seniors will owe little or no federal tax.
Other long-standing tax benefits remain in effect. The Credit for the Elderly or Disabled may help those with qualifying income. Seniors who itemize may deduct qualifying medical and dental expenses that exceed the applicable percentage of adjusted gross income. Depending on where you live, state-level property tax relief programs may also be available.
Reviewing your total income and deductions carefully is key. Use last year’s return as a starting point. When filing, be sure to check eligibility for the new senior deduction on Form 1040 or 1040-SR. If your return is relatively simple, free resources such as IRS Free File, Tax Counseling for the Elderly (TCE), or AARP Foundation Tax-Aide can provide assistance. For more complex situations involving investments, rental property, or multiple income sources, consulting a qualified tax expert may be worthwhile.
While Social Security is still taxable in certain situations, the expanded standard deduction and the new senior professional bonus deduction beginning in 2025 could significantly lower taxable income for many older adults. Seniors may find they owe less than expected—or possibly nothing at all. Take time to understand these updates. Need help? One Senior Place in Viera and Altamonte Springs keeps a list of tax help sites. Visit OneSeniorPlace.com.
Brenda Lyle is a Certified Care Manager and Certified Dementia Practitioner with One Senior Place, Greater Orlando. One Senior Place is a marketplace for resources and provider of information, advice, care and on-site services for seniors and their families. Submit your questions to AskOSP@OneSeniorPlace.com. For immediate help, call 321-751-6771 or visit One Senior Place, The Experts in Aging
