US seniors can claim up to $31,625 in IRS tax deductions: Check age eligibility, income range, other details

Income tax calculations in the United States, especially for senior citizens, are set to see some changes as Donald Trump's One Big Beautiful Bill (OBBB) Act, enacted in July last year, is implemented, according to The Hill.

The publication reported that seniors aged 65 years and over, and with incomes up to $75,000, $125,000 and $250,000 annually, can claim from $8,000 up to $31,625 when filing in 2029. The upper limit takes into account all IRS tax deductions available to them on income tax.

The development is significant as tax filing season in the US begins on 26 January, it added.

What are the changes? How much deductions do senior citizens get?

• As per tax code changes implemented under Donald Trump's OBBB Act, those aged 65 and older are eligible for a new $6,000 deduction, in addition to the $2,000 standard deduction already in place. This takes the base deduction for income up to $75,000 to $8,000, as per the report.
• Further, the US allows couples to file together. As such, eligible senior couples making up to $150,000 jointly can claim a base deduction of $12,000 up to $15,200 (including the standard deduction of $3,200).
• For individuals making more than $75,000, up to $175,000, their deduction will decrease by $60 for every $1,000 in additional income past that threshold, it added.
• For senior couples, the phase-out will be for those making more than $150,000, up to $250,000.
• The standard deduction of $2,000 for senior individuals and $3,200 for senior couples was implemented under the 2017 Tax Cuts and Jobs Act (TCJA), the report noted.
• Further, the OBBA Act also increases the TCJA applied standard deductions as follows: $15,750 for individual filers, $31,500 for married couples, and $23,625 for heads of households. The last category is applicable across ages.
• This means individual seniors can claim maximum deduction, including all heads up to $23,750, and if head of household, this can increase to $31,625.
• For married couples, the maximum deduction increases to $46,700, the report said, citing H&R Block calculations.

What is the eligibility requirement?

• Must have turned 65 by 31 December 2025.
• Must have a social security number.
• Deductions will be available through tax year 2028 for filings made in 2029.

How will the deductions reflect in taxes?

• The deductions will be given as refunds after taxes are filed, the report said.
• Those filing physical papers can expect a refund in six to eight weeks.
• Those filing taxes online can expect a refund in less than three weeks.
• Those opting for direct deposit can see refunds even faster. No timeline was specifically mentioned, the report added.

Are these deductions available for taxpayers across all US states?

The deductions under the OBBB Act are not immediately available for taxpayers across all US states, according to an AP report. The report added that states can decide whether they want to incorporate federal tax cuts into their own state codes, and while some states do so automatically, others require official steps to implement the changes.