How the new $6,000 senior tax cut could affect older Americans

A new $6,000 tax cut for Americans age 65 and older could boost refunds for millions of older taxpayers, putting an average of $670 more in their pockets this year, according to the advocacy group AARP.

But some older Americans could see more. AARP notes that taxpayers in the 22% tax bracket—those earning between about $44,000 and the $75,000 income cap for the deduction—could save as much as $1,320 per person.

“The benefits could be enormous,” Bill Sweeney, AARP’s senior vice president of government affairs, said in a conference call Thursday. “The bonus cuts will last until 2028 — that’s four years of immediate relief when older Americans are facing really high costs.”

The $670 figure is based on a 2025 analysis by the White House Council of Economic Advisers, which assessed the impact of new cuts included in Republican lawmakers’ tax and spending legislation, which “Big, beautiful bill“Action.

The tax break comes as seniors tell AARP they are struggling to keep up with the rising costs of medicine, food and other basic expenses, said Nancy Limond, the group’s chief advocacy and engagement officer.

“In focus groups last fall, we heard about people working long after they thought they’d retire,” she said. “Sometimes in the world we live in, $600 doesn’t seem like a lot, but we can tell you, based on conversations with our members, it’s a very, very significant help for them.”

AARP officials expressed concern that some older Americans may miss out on the new senior deduction because they are unaware of the tax break, which takes effect for the 2025 tax season. The IRS will start Accepting tax files It is January 26.

Who qualifies for the $6,000 senior deduction?

According to the IRS, people who turn 65 by December 31, 2025 are eligible for the new deduction. The deduction provides $6,000 for each eligible individual, or $12,000 for married couples who both qualify.

The tax break is subject to income limits. Single filers age 65 and older qualify for the full $6,000 deduction if their modified adjusted gross income was less than $75,000 last year, while married couples must earn less than $175,000 to receive the full $12,000.

The deduction is reduced by six cents for every $1 above those thresholds, and phased out entirely for single filers earning more than $175,000 and married couples earning more than $250,000.

Individuals also need a work-authorized Social Security number to qualify for the senior deduction, H&R Block notes.