Military retirees and older veterans will be glad to hear about a brand-new tax break: the Senior Deduction.
How It Works
Starting in 2025, taxpayers age 65 and older can claim an additional $6,000 deduction, reducing taxable income.
Who Qualifies
- Individuals age 65 or older by the end of the tax year.
- Married couples filing jointly where one or both spouses are 65 or older.
Income Limits
The deduction phases out for higher-income households, beginning at:
- $75,000 for single filers
- $150,000 for married couples
Why It Matters
This deduction is especially valuable for retirees who rely on Social Security, pensions, or military retired pay. It can help reduce or even eliminate federal taxes on Social Security benefits, leaving more money in your pocket.
Military Family Relevance
Veterans and retired service members often face complex tax situations involving military retired pay, VA disability compensation, and Social Security. The new senior deduction adds a straightforward way to reduce taxable income, particularly helpful for those living on fixed retirement benefits.
PIM Tax Services specializes in working with retirees and veterans—we’ll make sure you claim this new deduction if you qualify.