There is no "no tax on Social Security" law. The 2025 tax law (the One Big Beautiful Bill Act, P.L. 119-21) left the rules for taxing Social Security benefits exactly as they were. What it added is a new deduction of up to $6,000 per person age 65 or older, for tax years 2025 through 2028. It shrinks by 6% of your modified adjusted gross income (MAGI) above $75,000 ($150,000 on a joint return) and is gone at $175,000 ($250,000 joint). For many retirees, that deduction wipes out most or all of the tax they would have paid on their benefits. For others, it changes nothing.
This guide covers the return most people will file next, the 2026 tax return filed in 2027, with 2025 figures noted where they differ. For the rest of the law's changes to SNAP, Medicaid and tax credits, see our One Big Beautiful Bill benefits changes guide.
The Senior Deduction at a Glance
| Rule | What the law says |
|---|
| Amount | Up to $6,000 per qualifying person |
| Married couple, both 65 or older | Up to $12,000 |
| Age | 65 or older by the last day of the tax year |
| Tax year 2026 birth date cutoff | Born before January 2, 1962 |
| Tax year 2025 birth date cutoff | Born before January 2, 1961 |
| Years | Tax years 2025, 2026, 2027 and 2028 (ends after 2028) |
| Phase-out starts | MAGI over $75,000, or $150,000 married filing jointly |
| Phase-out rate | 6% of MAGI over the threshold |
| Fully phased out | $175,000 MAGI, or $250,000 married filing jointly |
| Social Security number | Required for each person claiming it |
| Married filing separately | Not allowed. Married couples must file jointly |
| Itemize or standard deduction | Either. You get it both ways |
| Where it goes | IRS Schedule 1-A, Part V, then Form 1040 or 1040-SR, line 13b |
Sources: 26 U.S.C. 151(d)(5)(C), added by P.L. 119-21; IRS Schedule 1-A (2025); IRS news release IR-2026-28 (March 2, 2026).
The $6,000 is a fixed amount written into the law. It is not adjusted for inflation, so it stays $6,000 in every year it exists.
Social Security Is Still Taxed the Same Way
The rule for taxing benefits is in section 86 of the tax code, and the 2025 law did not touch it. The IRS still adds up your "combined income": your other income, plus any tax-exempt interest, plus half of your Social Security benefits. Then it compares that to fixed base amounts that have not changed since the 1990s.
| Filing status | Combined income | Share of benefits that can be taxed |
|---|
| Single, head of household | Under $25,000 | None |
| Single, head of household | $25,000 to $34,000 | Up to 50% |
| Single, head of household | Over $34,000 | Up to 85% |
| Married filing jointly | Under $32,000 | None |
| Married filing jointly | $32,000 to $44,000 | Up to 50% |
| Married filing jointly | Over $44,000 | Up to 85% |
| Married filing separately, lived together | Any amount | Up to 85% |
Source: 26 U.S.C. 86(c). SSA's withholding page states the same $25,000 and $32,000 thresholds (ssa.gov, viewed through the Wayback Machine capture of October 8, 2026, because ssa.gov blocked a direct request).
No more than 85% of your benefits can ever be taxed. And the "taxable" share is just added to your income. You still subtract your deductions before any tax is owed. Our guide to whether Social Security is taxable has a step-by-step worksheet for this part.
That is where the new deduction comes in. It does not change how much of your Social Security counts as taxable income. It lowers your taxable income after that step, the same way the standard deduction does.
How the $6,000 Stacks With Your Other Deductions
People 65 and older now get three layers of deduction on a 2026 return if they take the standard deduction:
| Tax year 2026 | Single, 65+ | Married filing jointly, both 65+ |
|---|
| Basic standard deduction | $16,100 | $32,200 |
| Additional deduction for age 65 (existing rule) | $2,050 | $3,300 ($1,650 each) |
| New senior deduction (if MAGI under the threshold) | $6,000 | $12,000 |
| Total | $24,150 | $47,500 |
Sources: IRS Rev. Proc. 2025-32, sections 4.14(1) and 4.14(3) (tax year 2026 amounts); 26 U.S.C. 151(d)(5)(C).
For 2025 returns, the matching figures were a $15,750 single standard deduction ($31,500 joint), plus the age-65 additional amount, plus the same $6,000.
People who are also blind get a second age-or-blindness amount on top. People who itemize lose the standard deduction and its age-65 add-on, but they keep the $6,000 senior deduction.
Who Qualifies
You can claim the senior deduction on your 2026 return if all of these are true:
- You are 65 or older by December 31, 2026. The IRS uses a birth date cutoff because it treats you as turning 65 the day before your birthday. For tax year 2025 the IRS wrote it as "born before January 2, 1961." The same rule one year later means born before January 2, 1962.
- You have a valid Social Security number. The law borrows the Child Tax Credit definition: a number issued to a citizen or to someone authorized to work, and issued before the return's due date. An ITIN does not count.
- If you are married, you file a joint return. Married filing separately gets no senior deduction, even if both spouses are 65.
- Your MAGI is under $175,000 (single, head of household, qualifying surviving spouse) or $250,000 (married filing jointly). Below $75,000 or $150,000 you get the full amount.
You do not need to receive Social Security to qualify. A 66-year-old still working full time and not yet collecting benefits gets it too. And a 64-year-old collecting early retirement benefits does not.
On a joint return, each spouse is checked separately. If one spouse is 67 and the other is 63, the couple gets one $6,000 deduction, not two. If only one spouse has a valid Social Security number, only that spouse's $6,000 counts.
How the Income Phase-Out Works
MAGI for this deduction is your adjusted gross income (Form 1040, line 11), plus any foreign earned income or U.S. territory income you excluded. For most retirees, MAGI is simply AGI. Your AGI already includes the taxable part of your Social Security, pension and IRA withdrawals, and wages.
The math on Schedule 1-A, Part V:
- Take your MAGI.
- Subtract $75,000 ($150,000 if married filing jointly).
- Multiply what is left by 6%.
- Subtract that from $6,000. This is the amount each qualifying person gets.
Step 4 matters for couples. The form figures the reduced amount once and then gives it to each spouse who qualifies (lines 35, 36a and 36b). Some websites subtract the reduction once from $12,000. The IRS form does not.
| Filing status | MAGI | Reduction | Deduction per person | Couple total (both 65+) |
|---|
| Single | $60,000 | $0 | $6,000 | n/a |
| Single | $95,000 | $1,200 | $4,800 | n/a |
| Single | $125,000 | $3,000 | $3,000 | n/a |
| Single | $175,000 | $6,000 | $0 | n/a |
| Joint | $140,000 | $0 | $6,000 | $12,000 |
| Joint | $200,000 | $3,000 | $3,000 | $6,000 |
| Joint | $230,000 | $4,800 | $1,200 | $2,400 |
| Joint | $250,000 | $6,000 | $0 | $0 |
Three Examples on a 2026 Return
These use the 2026 standard deduction, the age-65 add-on, and the 2026 tax brackets from Rev. Proc. 2025-32. They are simplified (no other credits or deductions) to show how the pieces fit.
Example 1: Single retiree with an IRA. Linda is 68. She gets $30,000 a year in Social Security and takes $20,000 from her IRA. Her combined income is $35,000 ($20,000 plus half of $30,000), so $5,350 of her benefits is taxable. Her AGI is $25,350. Her standard deduction plus the age-65 add-on is $18,150, which leaves $7,200 of taxable income and about $720 in federal tax. The senior deduction takes off another $6,000. Her taxable income drops to $1,200 and her tax to about $120. Part of her Social Security is still "taxable," but her bill nearly disappears.
Example 2: Married couple with a pension. Both spouses are 66. They get $40,000 in Social Security together and $40,000 from a pension. Their combined income is $60,000, so $19,600 of their benefits is taxable and their AGI is $59,600. After the $35,500 standard deduction with both age-65 add-ons, $24,100 is taxable, for about $2,410 in tax. The two senior deductions ($12,000) bring taxable income to $12,100 and tax to about $1,210. The deduction saves them $1,200.
Example 3: Social Security only. Walt is 72 and lives on $26,000 a year in Social Security with no other income. His combined income is $13,000, well under $25,000, so none of his benefits are taxable. He owed no federal income tax before the new law and owes none now. The senior deduction is worth $0 to him.
Example 3 is the most common situation for retirees who rely mostly on Social Security. A large share of them already paid no federal income tax on their benefits. The deduction helps most for people with a pension, IRA withdrawals, part-time wages or investment income on top of Social Security, and MAGI under the phase-out.
What the Senior Deduction Does Not Change
The senior deduction is taken after AGI is figured. That means it does not lower any number that is built from AGI. That includes:
- The taxable share of your Social Security. Combined income is figured before any deduction.
- Medicare IRMAA surcharges. IRMAA uses your AGI plus tax-exempt interest from two years earlier, so the deduction does not move you into a lower bracket. See our IRMAA 2026 guide.
- ACA premium tax credit income. Marketplace income counts all of your Social Security, including the part that is not taxed, and the senior deduction does not reduce it.
- Medicaid, SNAP and Medicare Savings Program income tests. These programs count your income, not your taxable income. A tax deduction does not lower the income they see. If money is tight, check the Medicare Savings Program income limits, which can pay your Part B premium ($202.90 a month in 2026).
- Your state income tax. States decide on their own whether to copy the federal deduction. Many states already exempt Social Security benefits entirely. Check your state revenue department.
It also does not lower the tax on benefits paid to people under 65, including SSDI recipients. Someone on SSDI at 60 gets nothing from this deduction until the year they turn 65.
How to Claim It on Your Return
- Wait for your SSA-1099. Social Security mails it in January. Box 5 shows your net benefits for the year.
- Figure your AGI as usual. Your tax software or the Form 1040 instructions worksheet figures the taxable part of your benefits.
- Fill out Schedule 1-A, Part V. Enter your MAGI, apply the phase-out, and enter the result for yourself (line 36a) and for your spouse if you file jointly and your spouse qualifies (line 36b).
- Carry the total to Form 1040 or 1040-SR, line 13b. This line comes after the standard or itemized deduction line, which is why you get both.
- Check that both spouses were counted. On a joint return where both of you are 65 or older and have valid Social Security numbers, line 37 of Schedule 1-A should show double the per-person amount from line 35. If your software shows only one, look for a missing birth date or Social Security number for your spouse.
Free filing help is available. IRS VITA sites generally serve people who make about $70,244 or less, and the Tax Counseling for the Elderly (TCE) program focuses on people 60 and older. IRS Free File income limits for 2026 returns are set in January 2027.
Missed it on your 2025 return? If you were 65 or older in 2025 and did not claim the deduction, you can file Form 1040-X to amend. Amended returns are generally allowed up to 3 years after you filed.
Should You Change Your Withholding?
If you have federal tax withheld from your Social Security check, the senior deduction may mean you are now over-withholding. SSA lets you withhold 7%, 10%, 12% or 22% of each payment, or nothing. You can change it in your my Social Security account, by calling 1-800-772-1213, or with Form W-4V. Pension and IRA withholding is changed with the payer. Lower withholding means more money each month instead of a larger refund. Withholding too little can mean a bill in April, so run the numbers for your own situation first.
The Deduction Ends After 2028
Unless Congress extends it, tax year 2028 is the last year. That return is filed in early 2029. The $6,000 is not indexed, so its value shrinks a little each year as benefits rise with cost of living increases. The 2027 Social Security COLA is 3.6%, which raises benefits starting January 2027; see our 2027 COLA guide.
Frequently Asked Questions
Is Social Security tax-free now?
No. The 2025 law did not exempt Social Security benefits from federal income tax. Up to 85% of benefits can still be taxable under the same combined income rules as before. The law added a deduction of up to $6,000 per person 65 and older, which lowers or erases the tax many retirees owe.
Do I have to be getting Social Security to claim the $6,000 senior deduction?
No. The deduction depends on age, a valid Social Security number, filing jointly if married, and income. Whether you collect benefits does not matter. A 65-year-old who has not filed for Social Security still qualifies.
Can I take the senior deduction and the standard deduction?
Yes. It is a separate deduction on Form 1040, line 13b. You can take it with the standard deduction, including the existing extra amount for people 65 and older, or with itemized deductions.
What is the senior deduction phase-out for married couples?
The deduction shrinks by 6% of joint MAGI over $150,000. The reduced amount applies to each spouse who qualifies. At $200,000 of MAGI, each spouse gets $3,000, so a couple who are both 65 or older gets $6,000. It reaches zero at $250,000.
Can I claim it if I file married filing separately?
No. Married people must file a joint return to claim the senior deduction. Single, head of household and qualifying surviving spouse filers can claim it on their own return.
Does the senior deduction lower my Medicare premiums?
No. Medicare's income surcharges (IRMAA) are based on AGI plus tax-exempt interest. The senior deduction is subtracted after AGI, so it does not change the figure Medicare uses.
I turn 65 in December 2026. Do I qualify for 2026?
Yes. You only need to be 65 by the last day of the tax year. A person born on January 1, 1962 is treated as 65 on December 31, 2026 and also qualifies for 2026.
How many years can I claim the $6,000 deduction?
It applies to tax years 2025, 2026, 2027 and 2028. Someone who turns 65 in 2027 can claim it for 2027 and 2028 only, unless Congress extends it.
