Starting in 2025, Americans age 65 and older will be eligible for a new $6,000 federal tax deduction, part of sweeping reforms passed in the “One Big Beautiful Bill.” 

The deduction is available to individuals with incomes under $175,000 and couples under $250,000, with phase-outs above those limits. It stacks on top of existing standard and age-related deductions and can be claimed regardless of whether taxpayers itemize. 

Although the Social Security Administration initially claimed the bill eliminates taxes on Social Security benefits, it later corrected the error—those taxes remain unchanged. 

The new deduction, effective through 2028, could reduce many seniors’ taxable income, but may also slightly hasten Social Security trust fund depletion.