Under the newly passed One Big Beautiful Bill Act (OBBBA), Americans age 65 or older can now claim an additional tax deduction of up to $6,000. This deduction is added to the standard deduction or itemized deductions already available to taxpayers. For married couples where both spouses are 65 or older, the benefit can total up to $12,000, creating a potentially meaningful reduction in taxable income for many seniors.

The deduction begins with tax year 2025 and will remain in effect through 2028 unless extended. Supporters describe the policy as a way to ease financial pressure on retirees, especially those on fixed incomes facing rising medical and living expenses. The goal is to give seniors more breathing room as costs continue to climb.

For many retirees, a larger deduction may help reduce the tax burden on pensions, part-time earnings, or investment income. Couples who still owe taxes after using the standard deduction may see particularly noticeable savings. In a period marked by inflation and shrinking budgets, this policy could offer helpful relief.