A temporary $6,000 “senior” deduction (up to $12,000 for married couples filing jointly) is available for tax years 2025–2028, for people age 65+ and it applies whether taxpayers itemize or take the standard deduction and regardless of whether or not they have Social Security benefits on their return. Experts say it creates a meaningful opportunity for retirees to proactively manage taxable income during this four-year window.

Joe Elsasser, CFP® and president of Covisum, encourages planners not to treat it as only a Social Security-related break:

“Don’t just focus on the temporary additional senior deduction as a reduction of Social Security tax… think of it as a four-year additional deduction that could be applied against any kind of income.”

That perspective can influence decisions around withdrawals, Roth conversions, charitable giving, and even whether to delay (or suspend) Social Security benefits.

Read the full CNBC article here:
https://www.cnbc.com/2026/01/18/big-beautiful-bill-senior-deduction.html

 

How Covisum can help planners support retirement income clients

Covisum tools can help you model Social Security claiming approaches and retirement income strategies for clients, so you can compare scenarios and support more confident recommendations. If you’d like to see the software in action, take a 10-day free trial!