That could make a noticeable difference in your tax refund this year.
If you’re 65 or older, you could potentially get an even bigger tax refund this year thanks to the new senior tax credit. While not everyone is eligible, those who qualify could see their tax bill reduced by $6,000 this year ($12,000 for married couples), which could lead to significant savings.
The exact amount you can save will depend on your income and what other deductions you qualify for, but we already have a rough idea of what a difference this new senior tax credit will make to the average person’s retirement taxes.
How much will the new senior tax credit save you?
According to a June 2025 report from the Council of Economic Advisers, the new $6,000 senior tax credit would add an additional $670 to after-tax income for the average eligible senior. If both spouses qualify for the deduction, the final amount would double to $1,340.
Note that this deduction is in addition to the standard deduction based on your tax filing status and the additional standard deduction for seniors. For the 2025 tax year, the latter is worth $2,000 per single adult and $1,600 per married senior.
Along with other tax credits and credits you qualify for, a significant portion of your annual income can be exempt from taxation. As a result, your tax bill may be reduced or your refund may be larger.
But without filing a return, it’s hard to say exactly how much savings the new deduction will provide. Your accounting or tax preparation software will do the calculations and apply the appropriate deductions.
Not everyone is eligible for the new elderly deduction
The new senior citizen tax credit is only available to people age 65 and older with a valid Social Security number. Married couples must also file jointly to claim the deduction.
There are also income limits. In 2025, single adults may not earn more than $75,000 to claim the full credit. For married couples, this limit is $150,000. For every $1,000 you earn above these amounts, your deduction will be reduced by $60. It will be phased out completely for single adults with incomes of $175,000 or more and married couples with incomes of $250,000 or more.
It’s also worth noting that, at this time, the new senior citizen deduction is only valid through the 2028 tax year. The government may extend it or make it permanent, but it remains to be seen whether that will happen. Otherwise, seniors may need to prepare for tax increases starting in 2029.
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