How does Schedule 1‑A work for the 2025 senior bonus deduction, and who qualifies to claim it?
Executive summary
The 2025 “senior bonus” created by the One Big Beautiful Bill Act lets eligible taxpayers age 65+ claim an additional above‑the‑line deduction of up to $6,000 ($12,000 if both spouses qualify) and is reported on a new Schedule 1‑A; the benefit is temporary for tax years 2025–2028 and is subject to income phase‑outs and some exclusions [1] [2] [3]. Whether the deduction actually shows up on a return depends on correctly completing Schedule 1‑A (and in some cases checking the age box on Form 1040/1040‑SR), so taxpayers near thresholds or with unusual income should not assume it’s automatic [4] [5].
1. What Schedule 1‑A is and where the senior bonus lives
Schedule 1‑A is the new attachment to Form 1040 created to collect “additional deductions” from the OBBBA, and the senior bonus is calculated on Schedule 1‑A (Part V for 2025) and then flowed to Form 1040 (line 13b) to reduce adjusted gross income or otherwise report the enhanced deduction as required [1] [6]. The IRS framed Schedule 1‑A as the reporting vehicle for multiple new deductions in the statute and has said employers and payors will also have new reporting obligations tied to other OBBBA provisions, meaning the form is part of a wider paperwork change [1].
2. Who qualifies — the age test, filing statuses and ID requirements
To claim the senior bonus, a taxpayer must be age 65 or older on or before December 31, 2025; eligibility applies to single filers, heads of household, surviving spouses and married couples filing jointly (and it is per eligible individual) — turning 65 even on January 1, 2026 does not qualify for the 2025 return [7] [8] [9]. Claimants must generally be U.S. citizens or resident aliens with valid, work‑authorized Social Security numbers; some guidance from preparers and advocates stresses verifying SSNs to avoid disallowance [5] [7].
3. How the $6,000 limit and the phaseout work
The maximum is $6,000 per eligible person for 2025 (so a qualified married couple can claim $12,000), but the deduction phases down as Modified Adjusted Gross Income (MAGI) rises: the phaseout begins at $75,000 for single filers ($150,000 for joint filers) and fully phases out at $175,000 (single) or $250,000 (joint) with a reduction that equates to about $60 per $1,000 of MAGI above the threshold — roughly six cents of deduction lost for every dollar over the threshold [2] [6] [10]. Practically that means many middle‑income seniors will receive much of the benefit, while higher‑income households will be excluded.
4. Mechanics of claiming it — Schedule 1‑A, 1040 boxes and software
Taxpayers claim the bonus on Schedule 1‑A and that amount feeds into Form 1040 (the instructions and software prompts are expected to handle the math), but multiple outlets and advocates warn some filers could miss the break if they assume it’s automatic — some official materials indicate the IRS will apply the amount when the age box is checked on 1040/1040‑SR, while reporting‑oriented stories and tax shops emphasize the need to file Schedule 1‑A to document the deduction [4] [5] [11]. Most major tax software and tax professionals say they will include Schedule 1‑A for eligible clients but paper filers should be careful to complete the new form and watch the MAGI calculation lines [8] [12].
5. Notable exclusions, complications and policy wrinkles
The law excludes certain taxpayers — for example, self‑employed individuals in a Specified Service Trade or Business (SSTB) and employees whose employers are SSTBs may be ineligible — and nonresident aliens and other special status filers face additional rules; transition relief and IRS guidance are scheduled to clarify occupations, reporting and the tip‑related rules in 2025, so some administrative details remain in development [1] [6]. Stakeholders such as AARP have warned awareness gaps could leave seniors on fixed incomes missing the deduction, and preparers note the new form and MAGI calculations add complexity that could change timing of distributions or Roth conversions in taxpayers’ planning [7] [2].
6. Bottom line and practical flags to watch
For 2025 returns, any taxpayer who was 65 by Dec. 31, 2025 and meets the MAGI limits should plan to claim up to $6,000 on Schedule 1‑A (or $12,000 for two qualifying spouses), but needs to verify MAGI, SSNs and whether exclusions (like SSTB rules) apply and should use updated software or a preparer to avoid leaving the deduction on the table; the break sunsets after 2028 unless Congress extends it [1] [3] [11].