The One Big Beautiful Bill Act of 2025 contained dozens of consequential individual tax provisions, but in our Charlotte practice the one that has generated the most inbound client calls is the new $6,000 senior bonus deduction. Section 70103 of P.L. 119-21 amended IRC §151(d)(5) ¹ to create a new temporary above-the-line deduction of $6,000 for each "qualified individual", meaning the taxpayer or spouse who has attained age 65 before the close of the taxable year. It is in addition to the existing standard deduction and the existing age-65 additional standard deduction. It applies to tax years 2025 through 2028 only.
For our retired and near-retired clients, this changes 2025 and 2026 tax planning in measurable ways. It is not, however, the "no tax on Social Security" provision that the political messaging implied. Social Security taxation under IRC §86 ⁵ is unchanged.
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