Surprise Tax Win for 2025–2028: Permanent Standard Deduction, New Senior Break
Good news you can actually use: the larger standard deduction is now here to stay—and there’s a new $6,000 break for seniors (per person) in 2025–2028. In a few minutes, you’ll see exactly what changed, who benefits, and how to position your return—whether you’re taking the standard deduction or considering itemizing—so you keep more of your money this year.
1) The higher standard deduction is permanent (with inflation)
Beginning in 2018, the Tax Cuts and Jobs Act (TCJA) roughly doubled the standard deduction—but it was set to expire after 2025. The new law makes the larger standard deduction permanent and continues annual inflation adjustments.
2025 standard deduction amounts
Married Filing Joint / Qualifying Surviving Spouse: $31,500
Head of Household: $23,625
Single / Married Filing Separately: $15,750
Why it matters: More filers will take the standard deduction and skip itemizing unless they have large deductible expenses (e.g., mortgage interest, SALT, charitable giving, medical).
2) Personal exemptions remain eliminated
Before 2018, you got a personal exemption for each person on the return (you, spouse, dependents). TCJA suspended that and raised the standard deduction instead. The new law permanently eliminates personal exemptions—so they’re not coming back.
3) New Senior Exemption (temporary): 2025–2028
To deliver targeted relief to older taxpayers, Congress added a temporary “Senior Exemption” separate from Social Security:
Amount: $6,000 per person age 65+ (i.e., $12,000 for a couple if both are 65+)
Years: Tax years 2025 through 2028 (expires after 2028 unless extended)
Phaseout: Reduced by 6% of modified AGI over $75,000 (single) or $150,000 (married filing jointly)
Not indexed for inflation
Requires a valid Social Security Number on the return
Not tied to receiving Social Security benefits (it’s based on age 65+, not whether you collect benefits)
Think of it as an extra deduction layered on top of the standard deduction for those 65 or older.
Quick examples
Married couple, both 66, MFJ:
Standard deduction $31,500 + Senior Exemption $12,000 = $43,500 total deductions (before other adjustments).Single filer, 70, MAGI $80,000:
Senior Exemption $6,000 reduced by 6% of the excess over $75,000 → 6% × $5,000 = $300 reduction → $5,700 allowed.
What should you do now?
Age 65+ in 2025–2028? Plan your income and deductions to maximize the Senior Exemption before it sunsets.
Everyone else: With higher permanent standard deductions, consider “bunching” itemizable expenses (charity, medical) into one year when it pays.
Run a mid-year projection: Itemize vs. standard; estimate SALT and mortgage interest; coordinate retirement/HSA moves.
Age 65+? Pre-book your 2025 tax consultation now.
Slots fill fast once forms start arriving—lock in your spot today and let Hiatt Accounting Group handle your return from start to finish.
Why choose us:
Senior Exemption experts: We proactively calculate and document the new $6,000 per-person exemption (2025–2028) and make sure you get every dollar you’re entitled to.
Standard vs. itemized—done right: We run a comparison (including medical, charity, mortgage/SALT) so you don’t leave money on the table.
Local, family-run, 40+ years’ experience: Friendly guidance, plain-English explanations, and Colorado know-how.
Transparent pricing: Flat-fee quote upfront—no surprise add-ons at filing time.
Pre-book now to secure priority scheduling:
Call or text us: (720) 595-9473
Email: ahiatt@hiattaccountinggroup.com
Visit: www.hiattaccountinggroup.com
