A new $6,000 tax cut for Americans 65 and older could boost tax refunds for millions of older taxpayers, putting an average of about $670 more in their pockets this year, according to the advocacy group AARP.
But some older Americans can see more. AARP says taxpayers in the 22 percent tax bracket — roughly those earning between $44,000 and the $75,000 income limit for deductions — can save up to $1,320 each.
“The benefits could be substantial,” Bill Sweeney, AARP’s senior vice president of government affairs, said on a conference call Thursday. “The bonus deduction will continue through 2028 — which will be four years of immediate relief at a time when older Americans are facing very high costs.”
The $670 figure is based on a 2025 analysis by the White House Council of Economic Advisers, which evaluated the new deductions included in Republican lawmakers’ tax and spending laws, known as “Big and beautiful banknotes” Behavior.
The tax breaks come as seniors tell AARP they’re struggling to keep up with rising expenses for medicine, food and other basic expenses, said Nancy LeaMond, the organization’s chief advocacy and engagement officer.
“In focus groups last fall, we heard that people were still working long after they thought they were retired,” she said. “Sometimes in the world we live in, $600 doesn’t sound like a lot, but we can tell you based on conversations with our members, it’s a very, very significant help to them.”
AARP officials worry that some older Americans may miss out on the new senior deduction because they don’t know the tax break will take effect for the 2025 tax season. The IRS will launch Accept tax returns January 26th.
Who qualifies for the $6,000 senior citizen deduction?
People who turn 65 by December 31, 2025 are eligible for the new deduction, according to the IRS. The deduction provides $6,000 for each qualifying individual and $12,000 for a qualifying married couple.
Tax relief depends on income limits. Single filers age 65 and older qualify for the full $6,000 deduction if their modified adjusted gross income was less than $75,000 last year, while married couples must earn less than $175,000 to get the full $12,000 deduction.
The deduction is reduced by 6 cents for every dollar above those thresholds, and is eliminated entirely for single filers earning more than $175,000 and married couples earning more than $250,000.
H&R Block notes that individuals also need a work-authorized Social Security number to qualify for the advanced deduction.
