If you’ll be age 65 or older on December 31, 2025, the One Big Beautiful Bill Act (OBBBA) offers a new way to reduce your tax bill—whether or not you itemize.

💰 𝗛𝗼𝘄 𝗠𝘂𝗰𝗵 𝗖𝗮𝗻 𝗬𝗼𝘂 𝗗𝗲𝗱𝘂𝗰𝘁?

• Up to $𝟲,𝟬𝟬𝟬 per person
• Up to $𝟭𝟮,𝟬𝟬𝟬 for married couples filing jointly (both age 65+)
• Must file jointly to qualify—even if only one spouse is eligible

This 𝗯𝗼𝗻𝘂𝘀 𝗱𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 is 𝗶𝗻 𝗮𝗱𝗱𝗶𝘁𝗶𝗼𝗻 to:

– The regular standard deduction

– The existing age-based additional deduction

📊 𝗜𝗻𝗰𝗼𝗺𝗲 𝗟𝗶𝗺𝗶𝘁𝘀

• 𝗦𝗶𝗻𝗴𝗹𝗲𝘀: Phases out between $75,000–$175,000 MAGI
• 𝗝𝗼𝗶𝗻𝘁 𝗳𝗶𝗹𝗲𝗿𝘀: Phases out between $150,000–$250,000 MAGI

(MAGI = Adjusted Gross Income + certain rarely seen tax-free foreign income)

🧠 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀

To stay under the phaseout thresholds, consider:

• Spreading capital gains over multiple years
• Breaking up Roth IRA conversions
• Adding business deductions or retirement plan contributions

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.