Investing Blog Roundup: Senior Deduction Correction

Last week I mentioned the new senior deduction that applies for people age 65+ for years 2025-2028. It’s a $6,000 deduction, and for a married couple filing jointly who are both age 65+, it’s a $6,000 deduction per spouse (i.e., $12,000 total).

There’s a phaseout that kicks in at modified adjusted gross income of $75,000 for single taxpayers and $150,000 for married couples filing jointly. The deduction is reduced (but not below zero) by 6% of the excess of your MAGI over the applicable threshold.

In the context of a married couple filing jointly who are both age 65+, the way I originally read the text of the Act, I understood it as the total deduction amount phasing out at a 6% rate (which would have the phaseout range go from $150,000 to $350,000).

Instead, it is actually the $6,000 base amount per person that phases out at a 6% rate. In other words, for a married couple, both spouses’ deductions are being phased out simultaneously. Point being, you only need $100,000 of excess MAGI before the deduction is fully phased out. (That is, by MAGI of $250,000, a couple will not receive any senior deduction.)

Other Recommended Reading

• Social Security’s Financial Outlook: The 2025 Update in Perspective from Alicia Munnell
• 11 Things I’ve Learned as a Financial Planner from Elliott Appel
• Want to Live Longer? You Better Start Moving — All Day Long from Alex Hutchinson
• Different Kinds of Rich from Ben Carlson
• Investing a Lump Sum at All-Time Highs from Ben Carlson
• Gen Z Doing Great at Saving for Retirement from Lisa Rabasca Roepe (NYT)

Thanks for reading!