Overview
- A $6,000 “enhanced deduction for seniors” now applies per filer age 65+ ($12,000 for two spouses) on 2025 returns and is scheduled to expire after 2028.
- IRS data show refunds running higher, with the average at $3,742 as of Feb. 27 (up 10.6% year over year) and returns using the new Schedule 1‑A deductions averaging $775 more than last year.
- To receive the break, eligible taxpayers must complete new Schedule 1‑A and transfer the amount to Form 1040 (line 13b/13c), and the deduction is available whether you itemize or take the standard deduction.
- The deduction phases out by modified AGI—starting above $75,000 for single filers and $150,000 for joint filers, fully ending at $175,000 and $250,000—and MAGI includes add‑backs for certain Puerto Rico and foreign income exclusions.
- Married couples must file jointly and each eligible spouse must have a Social Security number, and experts note that filing with Schedule 1‑A can reclaim withholding and, for many lower‑income seniors, effectively eliminate tax on Social Security.