Overview
- The temporary add-on applies for tax years 2025 through 2028, rising to $12,000 for married couples filing jointly when both spouses are at least 65.
- To receive the deduction, taxpayers check the 65-or-older box on Form 1040 or 1040-SR; the amount flows through Schedule 1-A, Line 37, and is applied automatically by the IRS.
- The benefit stacks on top of the standard deduction but phases out starting at $75,000 MAGI for single filers and $150,000 for joint filers, with reductions reported at roughly 6% above those thresholds.
- The deduction can lower taxes owed on income that makes up to 85% of Social Security benefits taxable, though it does not change how those benefits are calculated for tax purposes.
- Advisers highlight using the four-year window for strategies such as Roth conversions or delaying Social Security, taking advantage of the temporary cushion to reduce lifetime taxes.