Last week I mentioned the new senior deduction that applies for people age 65+ for years 2025-2028. It’s a $6,000 deduction, and for a married couple filing jointly who are both age 65+, it’s a $6,000 deduction per spouse (i.e., $12,000 total).
There’s a phaseout that kicks in at modified adjusted gross income of $75,000 for single taxpayers and $150,000 for married couples filing jointly. The deduction is reduced (but not below zero) by 6% of the excess of your MAGI over the applicable threshold.
In the context of a married couple filing jointly who are both age 65+, the way I originally read the text of the Act, I understood it as the total deduction amount phasing out at a 6% rate (which would have the phaseout range go from $150,000 to $350,000).
Instead, it is actually the $6,000 base amount per person that phases out at a 6% rate. In other words, for a married couple, both spouses’ deductions are being phased out simultaneously. Point being, you only need $100,000 of excess MAGI before the deduction is fully phased out. (That is, by MAGI of $250,000, a couple will not receive any senior deduction.)
Other Recommended Reading
Thanks for reading!
“A wonderful book that tells its readers, with simple logical explanations, our Boglehead Philosophy for successful investing.”
– Taylor Larimore, author of