CAPITAL REGION, NY – As inflation pushes everyday costs higher, seniors in New York now have a federal tax tool to stretch their budgets. The Big Beautiful Bill, signed into law in July 2025, created an additional standard deduction for taxpayers age 65 or older.
How the deduction works
Single seniors may claim an extra $6,000, while married couples filing jointly can claim $12,000. The benefit begins to phase out once a senior’s adjusted gross income reaches $75,000 for single filers and $150,000 for married couples, according to Aaron Fagan, Portfolio Manager at Fagan Associates.
“I think it’s smart that it phases out, so lower‑income seniors can really take advantage of the $6,000 or $12,000 deduction,” Fagan said. “It’s not a tax credit, so it won’t come directly off your taxes, but it does reduce taxable income.”
Eligibility and timeline
To qualify, a taxpayer must be 65 on or before the tax year in question and have a valid Social Security number. The deduction applies whether the taxpayer claims the standard deduction or itemizes, per IRS guidance.
The provision is set to expire at the end of 2028 unless Congress renews it.
Why the deduction matters now
The U.S. Bureau of Labor Statistics reported a 3.7% inflation rate for September, up from 3.4% in August. Higher gasoline prices, grocery costs and heating bills are squeezing household budgets, especially for fixed‑income retirees.
Financial experts suggest seniors keep some savings in high‑yield accounts. “Earning four or five percent per year can go a long way to help battle these higher prices we’re all seeing at the gas pump or in the grocery store,” Fagan added.
What seniors should do
Eligible seniors should review their 2025‑2026 tax returns to ensure the extra deduction is claimed. Consulting a tax professional can help determine whether the phase‑out thresholds affect their situation.
For those who may not be aware of the benefit, local senior centers and community groups are encouraged to share the information, helping retirees make the most of the federal relief before the program ends.
Original reporting: CBS 6 WRGB Albany (local) — read the source article.
