What are the 2025 MAGI phaseout thresholds for the senior bonus deduction by filing status?
Executive summary
The senior bonus deduction for tax year 2025 provides up to $6,000 per eligible taxpayer and is subject to a MAGI-based phaseout: the full bonus is available for single filers with MAGI up to $75,000 and for married couples filing jointly up to $150,000, with the deduction beginning to phase out above those levels and disappearing at roughly $175,000 (single) and $250,000 (joint) [1] [2] [3]. The phaseout reduces the deduction at a rate of about 6% of the MAGI amount over the applicable threshold, effectively trimming $0.06 for each dollar above $75,000 (single) or $150,000 (joint) until the deduction hits zero [4] [5] [6].
1. What the statutory thresholds look like in plain terms
Congress wrote the new temporary “senior bonus” so that taxpayers age 65+ qualify for the full $6,000 per person only if their modified adjusted gross income (MAGI) is below $75,000 for single filers and below $150,000 for married filing jointly; those are the clear lower phaseout cutoffs reported across major tax outlets and planning firms [1] [7] [6]. Once MAGI exceeds those cutoffs the bonus is not immediately lost but is reduced under a statutory phaseout formula—meaning many near those limits will receive a partial deduction rather than an all-or-nothing outcome [5] [3].
2. How the phaseout mathematically operates
Most professional summaries and practitioner guides state the deduction phases out at roughly 6% of the excess MAGI above the threshold: for example, a single filer with MAGI $100,000 is $25,000 over the $75,000 threshold and would lose $1,500 of the $6,000 bonus (6% × $25,000), leaving a $4,500 bonus for 2025 [4] [5] [3]. That 6% phaseout rate produces the commonly cited “fully phased out” end points of about $175,000 for single filers and $250,000 for joint filers because $100,000 of excess × 6% = $6,000 [1] [3].
3. Where consensus exists across reputable sources
Tax-industry reporting—Kiplinger, UHY, Providence Wealth, AARP and several accounting and wealth firms—converge on the same basic numbers: full bonus if MAGI ≤ $75,000 (single) or ≤ $150,000 (joint), phaseout begins above those levels, and the deduction disappears at roughly $175,000 (single) or $250,000 (joint) using a ~6% reduction formula [1] [8] [3] [2] [6]. These same sources emphasize the deduction is above-the-line, temporary for 2025–2028, and stacks with existing age-based standard deduction increases for those 65+ [3] [8] [2].
4. Notable discrepancies and outlier reporting
A small handful of coverage diverges: one source claims a different phaseout structure (20% from much higher thresholds such as $100,000 single / $200,000 joint), but that reporting appears isolated and conflicts with the preponderance of practitioner guidance and mainstream tax reporting [9]. Given the weight of industry and mainstream outlets repeating the $75k/$150k start points and the 6% phaseout rule, the $100k/$200k plus 20% figure should be treated as an outlier until corroborated by IRS guidance or legislative text [9] [7].
5. Practical implications and what’s still uncertain
For taxpayers near the thresholds, relatively routine events—Roth conversions, large capital gains, required minimum distributions, or one-time pension payments—can push MAGI over the cutoff and materially reduce or eliminate the bonus; planners therefore recommend year‑end MAGI management for 2025 [5] [6]. The analysis here depends on accepted industry interpretations of the One Big Beautiful Bill and practitioner worksheets; formal IRS guidance and the 2025 tax forms will be the final authority on MAGI definitions and phaseout mechanics, and any nuance in the statutory text that alters the computation could change exact cutoffs or calculation steps [10] [3].
6. Bottom line
The authoritative consensus in tax reporting and advisory firms for 2025: full senior bonus up to MAGI $75,000 (single) and $150,000 (married filing jointly); the bonus phases out at approximately 6% of MAGI over those thresholds and is effectively eliminated near MAGI $175,000 (single) and $250,000 (joint), with some isolated, contradictory reporting that has not been widely corroborated [1] [5] [9].