The new tax break gives seniors up to $6,000 back. Here is someone who has the ability.

Older adults facing a financial crisis may be happy to know that the 2025 federal income tax return offers a way for those 65 and older to get more tax refund cash.

You’ll need to qualify—and be sure—to file a new Schedule 1-A to claim the special tax deduction.

The new, temporary “super bonus” will enable most taxpayers age 65 and older to deduct up to $6,000 of their income from their federal income tax returns. Many rules and restrictions apply, however, so not everyone in this age group will be eligible.

If you qualify, though, you could see a tax refund — or significant savings on your tax bill.

At a marginal tax rate of 12%, for example, a $6,000 deduction for a single taxpayer who is 65 or older results in a tax savings of $720.

The new advanced deduction for seniors applies if you itemize deductions, such as mortgage interest, or claim the standard deduction on your 2025 federal income tax return.

It’s also an additional break on top of the existing additional standard deduction for taxpayers age 65 and older who don’t itemize. For tax year 2025, the additional standard deduction for older adults is $2,000 for single taxpayers and $1,600 for each qualifying spouse filing jointly.

“There’s a lack of awareness that the deduction is available right now,” said John Hashta, senior vice president of campaigns for AARP, which supports the new advanced higher deduction and is working to get the word out about the new tax break.

Here are three things you need to know about the new “Advanced Deduction for Seniors” on page 2 of Schedule 1-A:

Income restrictions apply: High-income seniors get less of a tax break or no tax break because the deduction begins to phase out for those with adjusted adjusted gross income of $75,000 for single filers and $150,000 for joint filers.

The deduction ends at a rate of 6% for every $1,000. It is fully phased in at $175,000 for single filers or $250,000 for joint filers.

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You deal with your adjusted gross income – which is calculated by adding back certain earnings to your adjusted gross income. On Schedule 1-A, you add back any income from Puerto Rico that you excluded from AGI, as well as some income from Form 2555 for U.S. citizens related to foreign housing and foreign earned income, and income related to the tax break from Form 4563 to exclude income from U.S. permanent residents.

The White House Council of Economic Advisers estimated that those who qualify for the enhanced top deduction could earn an average of $670 more in after-tax income, thanks to the new tax break. The deficit is estimated to affect 33.9 million seniors, including older adults who do not claim Social Security benefits.

The amount of the deduction will depend on your income.

Importance of Age: If you’re 62 or 63 now, for example, forget about the increased senior deduction for your 2025 return. This tax break only applies to those 65 and older. On the 2025 return, the deduction for seniors applies to those born before January 2, 1961.

Eligible married couples who are both 65 and older can claim up to $12,000 in additional deductions.

The enhanced senior deduction is only available for four years — 2025, 2026, 2027 and 2028. Someone who turns 65 in 2029, for example, won’t get the deduction in future years unless the tax rules change again.

You need a new form: Tax professional Tom Osabin warned that the newly developed deduction for seniors could turn into a commonly lost deduction, especially for seniors who file simple returns and historically have not needed additional schedules.

Many leaders, he warned, will assume the new deduction is an automatic increase, similar to the long-standing additional standard deduction for taxpayers who are 65 and older. However, we are talking about new growth here, which requires additional paperwork. And you must file Schedule 1-A to claim the increased seniority deduction.

The increased maximum deduction is on page 2 of Schedule 1-A. See lines 31 through 37 on Schedule 1-A.

Bonus tip: Married couples cannot file separately and claim the new deduction for older adults, which many say provides relief from growing financial stress.

Contact personal finance columnist Susan Tampur: stompor@freepress.com. Follow himr At X@tompor.

This article was originally published in the Detroit Free Press: Who qualifies for the 2025 high bonus tax deduction?