2026 Tax Changes: Taxpayers across the U.S. will see significant changes in 2026 that could impact their filings and overall tax liability. The IRS has announced a higher standard deduction for all taxpayers and an extended $6,000 Senior Bonus for individuals aged 65 and older, providing substantial relief for seniors and other taxpayers.
Higher Standard Deduction for 2026
For the 2026 tax year (returns filed in 2027), the standard deduction amounts have been increased to account for inflation:
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Single filers and married filing separately: $16,100
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Heads of household: $24,150
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Married filing jointly and surviving spouses: $32,200
These higher deductions automatically reduce taxable income, giving taxpayers more relief without any additional action required.
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$6,000 Senior Bonus Deduction
In addition to the standard deduction and existing age/blind additional deductions, the IRS has introduced a Senior Bonus Deduction for taxpayers aged 65 and older:
- Individuals can claim up to $6,000.
- Married couples filing jointly, with both spouses over 65, can claim up to $12,000.
- The deduction is available for tax years 2025 through 2028.
- Phase-out begins for single filers with modified adjusted gross income (MAGI) above $75,000 and joint filers above $150,000.
This deduction is available whether you itemize deductions or take the standard deduction, making it broadly beneficial for older taxpayers.
Impact on Taxable Income
Example for a single taxpayer aged 65 or older:
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Base standard deduction: $16,100
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Additional standard deduction for age 65+: $2,050
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Senior Bonus Deduction: $6,000
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Total potential deduction: $24,150
Example for a married couple, both 65 or older:
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Base standard deduction: $32,200
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Additional standard deduction for both spouses: $3,300
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Senior Bonus: $12,000
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Total potential deduction: $47,500
These deductions can significantly lower taxable income and may reduce tax owed, especially for seniors relying on fixed incomes.
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Eligibility Rules and Tips
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Taxpayer must turn 65 on or before December 31, 2026.
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Must have a valid Social Security Number or ITIN.
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Income thresholds apply: phase-out begins at $75,000 for singles and $150,000 for joint filers.
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Deduction is available regardless of whether you itemize or take the standard deduction.
Final Thoughts
The 2026 tax changes are particularly beneficial for older Americans. With a higher standard deduction and the extended $6,000 Senior Bonus, seniors can reduce taxable income substantially, which may also impact Social Security taxation and overall tax liability.
Taxpayers should review their income and withholding strategies to maximize benefits under the new rules, ensuring they take full advantage of these changes when filing their 2026 taxes.
FAQs – 2026 Tax Changes
Q1. What is the new standard deduction for 2026?
Single filers: $16,100; Heads of household: $24,150; Married filing jointly: $32,200.
Q2. Who qualifies for the $6,000 Senior Bonus?
Individuals aged 65 or older; married couples may claim up to $12,000 if both qualify.
Q3. Does the Senior Bonus apply if I itemize deductions?
Yes, it can be claimed regardless of whether you itemize or take the standard deduction.
Q4. Is there an income limit for the Senior Bonus?
Yes, phase-out starts at $75,000 for single filers and $150,000 for joint filers.
Q5. How long is the Senior Bonus available?
It is available for tax years 2025 through 2028.
