Is there a new deduction for people 65 and older?

Who it covers

• For tax years beginning before January 1, 2029, the Code allows an extra deduction for each qualified individual on the return.
• A qualified individual is you, if you are 65 by the end of the tax year, and on a joint return your spouse, if your spouse is 65 by then. A couple who are both 65 count twice.

How it shrinks

• The deduction is reduced by a set percentage of your modified adjusted gross income above a threshold, which is higher on a joint return. At high enough income it reaches zero.
• Each qualified person's social security number has to be on the return.

What it turns on

• your age, and your spouse's, at the end of the tax year
• whether you file a joint return
• your modified adjusted gross income

What would make it not apply

• neither you nor your spouse on a joint return is 65 by the end of the tax year
• the qualified person's social security number is not on the return
• the tax year begins after December 31, 2028

The law, quoted

Sources: IRC §151. Each passage below is copied from the document VALID fetched, with the start of its SHA-256 fingerprint.

For purposes of clause (i), the term "qualified individual" means- (I) the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and (II) in the case of a joint return, the taxpayer's spouse, if such spouse has attained age 65 before the close of the taxable year.

IRC §151 — For purposes of clause (i), the term "qualified individual" means- · law in effect September 29, 2026 · fingerprint c4b5037fb268

(II) Modified adjusted gross income For purposes of this clause, the term "modified adjusted gross income" means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.

IRC §151 — (II) Modified adjusted gross income · law in effect September 29, 2026 · fingerprint c4b5037fb268