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Filing taxes as a married couple over 65 probably feels routine by now, but a new deduction worth up to $12,000 has added something worth checking before you send off your return.
At a 22% tax rate, the full deduction would lower your federal tax bill by about $2,640, and that kind of savings can go a long way toward your retirement goals. Getting that full amount isn't automatic, though.
A filing choice you've made for years without thinking could disqualify you entirely, and an IRA withdrawal taken at the wrong time could reduce what you receive. Here's how it works.
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How the deduction works
If you're 65 or older by December 31 of the tax year, you may claim an additional deduction of up to $6,000, or $12,000 for a married couple filing jointly where both spouses meet the age requirement. When only one spouse qualifies, the couple's maximum is $6,000.
The deduction stacks on top of whatever you're already claiming and applies whether you use the standard deduction or itemize. That puts the total standard deduction for a married couple over 65 at roughly $46,700 in 2025, or about $23,750 for a single senior. It's available for tax years 2025 through 2028 under the 2025 tax law, also known as the One Big Beautiful Bill.
Why filing separately can cost you the full amount
Married couples must file jointly to claim this deduction, and filing separately disqualifies both spouses entirely.
Some couples have filed separately for years, either to protect against a spouse's debt or qualify for certain income-based programs. Those arrangements may still make sense, but under this provision, filing separately means walking away from up to $12,000 in deductions. For most couples, that can be a costly tradeoff.
Another thing to note is that if a spouse passes away during the tax year, the surviving partner can still file jointly and claim the full deduction based on both spouses' ages. The following year, however, the survivor would file as single or head of household, and the maximum is reduced to $6,000.
What counts toward the income limit
The deduction phases out based on your modified adjusted gross income (MAGI), and for retirees, that number is often higher than expected.
MAGI includes pension payments, annuity income, interest, dividends, part-time wages, capital gains, and required minimum distributions from IRAs and 401(k) plans. RMDs alone can push a couple well past the phase-out threshold, since they kick in at age 73 and are fully taxable.
Social Security benefits feed into the calculation, too. The benefits themselves aren't always fully taxable, but other income on your return can cause up to 85% of your Social Security to become taxable, which in turn raises your MAGI.
How much you lose for every dollar over the limit
For joint filers, the phase-out begins at $150,000 of MAGI. For single filers, it begins at $75,000. Above those thresholds, each person's $6,000 deduction is reduced by 6 cents for every dollar over the line, and the deduction is fully wiped out at $250,000 for joint filers.
A married couple with a combined MAGI of $175,000, for example, is $25,000 over the cutoff. Multiplying that excess by 6% reduces the deduction by $1,500, reducing each spouse's deduction from $6,000 to $4,500, for a combined total of $9,000 instead of $12,000.
If you're near the threshold, even a modest income spike from a larger-than-usual RMD or a capital gain could cost you several hundred dollars.
Two strategies that may keep you under the line
If your income is near the $150,000 threshold, a qualified charitable distribution (QCD) is one of the more effective ways to protect the full deduction.
Once you are 70 1/2 or older, you can send money straight from your IRA to a qualified charity. That amount can count toward your required minimum distribution, and it does not get added to your taxable income. For couples who already planned to give, that can lower MAGI enough to preserve more of the deduction.
Timing your withdrawals is another option worth considering. If you have some flexibility, splitting IRA withdrawals or investment sales between two tax years can keep your income from rising too far in either one.
A withdrawal divided between December and January, for example, is counted in two different tax years. That will not fit every situation, though it can help when your income is close to the line.
A few things to check before filing
Most of these rules will be handled automatically if you use tax software or work with a preparer, but the deduction is new enough that a quick review before you submit is worth the effort:
- Look at Schedule 1-A, Part V, on your completed return to make sure the full deduction amount is listed, since a missing or incorrect birth date can block it.
- If your income is low enough that you don't normally owe federal tax, file anyway. You can only claim this deduction by submitting a return.
- If you'd rather not handle this yourself, the IRS's VITA program and AARP Tax-Aide both offer free tax preparation staffed by volunteers trained on the new rules.
A few minutes of review, or a free session with a trained preparer, could be worth more than a thousand dollars on your return.
Bottom line
This deduction was designed specifically for older Americans, and for couples who qualify, it can put thousands of dollars back into their retirement plan.
The break is available through 2028, so there's time to adjust your approach if you miss part of it this round. The good news is that a few minutes of review before you file is all it takes to make sure the full break ends up on your return.
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