Eligibility
Available for tax years beginning after 2017 and before 2029. Requires the taxpayer to be 65+ and have a modified adjusted gross income below $75,000 ($150,000 for joint returns) to receive the full amount; subject to a 6% phase-out above those thresholds.
Frequently Asked Questions
Who is eligible for the Senior Taxpayer Deduction?
Available for tax years beginning after 2017 and before 2029. Requires the taxpayer to be 65+ and have a modified adjusted gross income below $75,000 ($150,000 for joint returns) to receive the full amount; subject to a 6% phase-out above those thresholds.
How does the Senior Taxpayer Deduction work?
A specific deduction of $6,000 is allowed for taxpayers (and their spouses on joint returns) who have attained age 65 before the close of the taxable year.
What law authorizes the Senior Taxpayer Deduction?
The Senior Taxpayer Deduction is authorized under IRC §151(d)(5)(C) of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §151
Source: Internal Revenue Code, Title 26, United States Code
§ 151. Allowance of deductions for personal exemptions(a) Allowance of deductionsIn the case of an individual, the exemptions provided by this section shall be allowed as deductions in computing taxable income.
(b) Taxpayer and spouseAn exemption of the exemption amount for the taxpayer; and an additional exemption of the exemption amount for the spouse of the taxpayer if a joint return is not made by the taxpayer and his spouse, and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.
(c) Additional exemption for dependentsAn exemption of the exemption amount for each individual who is a dependent (as defined in section 152) of the taxpayer for the taxable year.
(d) Exemption amountFor purposes of this section—(1) In generalExcept as otherwise provided in this subsection, the term “exemption amount” means $2,000.
(2) Exemption amount disallowed in case of certain dependentsIn the case of an individual with respect to whom a deduction under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, the exemption amount applicable to such individual for such individual’s taxable year shall be zero.
(3) Phaseout(A) In generalIn the case of any taxpayer whose adjusted gross income for the taxable year exceeds the applicable amount in effect under section 68(b),11 See References in Text note below. the exemption amount shall be reduced by the applicable percentage.
(B) Applicable percentageFor purposes of subparagraph (A), the term “applicable percentage” means 2 percentage points for each $2,500 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds the applicable amount in effect under section 68(b).1 In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting “$1,250” for “$2,500”. In no event shall the applicable percentage exceed 100 percent.
(C) Coordination with other provisionsThe provisions of this paragraph shall not apply for purposes of determining whether a deduction under this section with respect to any individual is allowable to another taxpayer for any taxable year.
(4) Inflation adjustmentExcept as provided in paragraph (5), in the case of any taxable year beginning in a calendar year after 1989, the dollar amount contained in paragraph (1) shall be increased by an amount equal to—(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 1988” for “calendar year 2016” in subparagraph (A)(ii) thereof.
(5) Special rules for taxable years beginning after 2017In the case of a taxable year beginning after December 31, 2017—(A) Exemption amountThe term “exemption amount” means zero.
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