Is Social Security Tax-Free Now? The New $6,000 Senior Deduction Explained

Oct 27

2 min read

"Social Security is no longer taxed." You've probably heard it on the news or from a neighbor. It's not quite true, but the real news is still good: if you're 65 or older, you may get a brand-new $6,000 deduction on your 2026 tax return.

What the senior deduction is

For tax years 2025 through 2028, every taxpayer age 65 or older can deduct an extra $6,000. If you're married and both spouses are 65+, that's $12,000 together.

It stacks on top of what seniors already get:

• The regular standard deduction ($16,100 single, $32,200 married filing jointly for 2026)

• The existing extra standard deduction for being 65 or older

You can claim it whether you itemize or take the standard deduction. It goes on the new Schedule 1-A.

So is Social Security tax-free?

Not exactly. The rules for taxing Social Security benefits didn't change. What changed is that this bigger deduction lowers your taxable income, so many retirees will owe little or no federal tax on their benefits. You also don't need to be collecting Social Security to claim it. Turning 65 is what counts.

Who qualifies

• You are 65 or older by December 31, 2026

• You have a valid Social Security number

• If you're married, you file a joint return

The income limit

The deduction shrinks by 6 cents for every dollar of modified adjusted gross income above $75,000 (single) or $150,000 (married filing jointly). A single filer loses it completely around $175,000.

Example

Maria and José are both 67 and file jointly. Their income is $80,000 from Social Security, a small pension and IRA withdrawals. They're under the $150,000 limit, so they each get the full $6,000. That's $12,000 less taxable income, on top of their standard deduction.

Don't miss these related moves

• Check your withholding. If you have tax withheld from pensions or IRA withdrawals, you may now be over-withholding.

• Plan IRA withdrawals. Staying under the income limit could protect your full deduction.

• Help your parents. Many seniors file on their own and could miss this. Share this post with them.

We help seniors file with confidence

At JVM Accounting, we take the time to explain your return in plain language, in English or Spanish. Schedule your 2026 tax appointment at jvmaccounting.com or call (904) 889-2326.