The write-off, which takes effect in tax year 2025 (returns filed in 2026), is in addition to the longstanding additional deduction for the elderly and visually impaired. It's also per individual, so married couples filing jointly can claim up to $12,000.
For 2025, seniors over 65 get a new $6,000 extra standard deduction (or $12,000 for qualifying married couples) in addition to the existing senior deduction, thanks to the new "One Big Beautiful Bill," phasing out at higher incomes (e.g., $75k single, $150k joint MAGI) and applying through 2028.
Bigger Refunds in 2026
Although the new tax provision does not explicitly eliminate taxes on Social Security, it will reduce taxes for many filers age 65+. If you've paid estimated taxes throughout the year or had taxes withheld on your income, you may end up getting a bigger refund (or owe less) in 2026.
Cost of Living Adjustment (COLA):
For the January to March 2025 period, there won't be an increase, as the CPI showed a small dip over the last three months. But don't worry—over the past year, benefits have still grown by 2.0%, helping seniors keep pace with rising living costs.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.
Under the new income tax regime for 2025-26, any taxable income up to ₹12,00,000 attracts a full rebate of ₹60,000 (under Section 87A), resulting in a nil tax liability.
The new senior tax deduction of up to $6,000 for single filers and $12,000 for joint filers, was created to help cover taxes on Social Security benefits. Taking the new senior deduction helps to reduce your taxable income, which can mean less tax or potentially an even bigger tax refund when you file your return.
Yes, Medicare premiums (Parts A, B, C, and D) can be tax-deductible as medical expenses if you itemize deductions on Schedule A and your total qualified medical costs exceed 7.5% of your Adjusted Gross Income (AGI), but self-employed individuals have a special rule allowing them to deduct premiums above the line, directly reducing AGI.
The tax deduction for seniors over 65 or older is a new tax introduced with the One Big Beautiful Bill Act. It allows them to claim an additional deduction of up to $6,000 on top of either: The base standard deduction (available to all Americans) Itemized deductions.
For tax year 2025, seniors over 65 get a significant new $6,000 extra standard deduction (or $12,000 for joint filers) under the temporary One, Big, Beautiful Bill (OBBB), effective 2025-2028, phased out at higher incomes ($75k single / $150k joint MAGI). This is in addition to the existing modest age-based increase (around $2,000 for single, $1,600 per spouse for married).
The senior deduction is an exemption for filers 65 and older introduced in the One Big Beautiful Bill Act. It allows seniors to claim an additional $6,000, whether they itemize or take the standard deduction.
Senior 'bonus' deduction
The 2025 tax law offers a "bonus" deduction of up to $6,000 for Americans age 65 and older and up to $12,000 for married couples filing jointly to reduce the amount of federal income subject to tax.
The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to nearly 71 million Social Security beneficiaries in January 2026. Increased payments to nearly 7.5 million SSI recipients will begin on December 31, 2025. (Note: Some people receive both Social Security and SSI benefits.)
The dollar amount increase to checks will vary depending on a person's benefit amount, but the average Social Security Retirement benefit, $2,008.31 in July 2025, will grow by about $56.
The confirmed amount is $300 per eligible senior, issued as a one‑time payment rather than a recurring monthly increase. Unlike regular pension adjustments, this top‑up is intended to deliver quick financial assistance at the beginning of the year.
The Canada Pension Plan (CPP) survivor's pension is a monthly payment paid to the legal spouse or common-law partner of the deceased contributor.
The U.S. Congress recently approved and sent to the President an economic stimulus bill. The bipartisan economic stimulus package represents a good effort to get money back to families and seniors as well. Millions of seniors, who do not normally have to file taxes, are eligible to receive a stimulus check.
Yes, Social Security recipients received a Cost-of-Living Adjustment (COLA) for 2025, but the bigger news is that they are getting a larger 2.8% COLA for 2026, announced in October 2025, which began with January 2026 payments, increasing average benefits by about $56 per month. The 2025 COLA was a smaller 2.5% increase, while the 2026 adjustment reflects moderating inflation, leading to higher payments starting in the new year.
Visit the IRS Get My Payment (GMP) portal at https://www.irs.gov/coronavirus/get-my-payment to see if you can expect a 2021 Economic Impact Payment. The GMP portal will provide the date when your payment was or will be sent.