Retire Wise | October 2025

Good news for seniors: introduced under the One Big Beautiful Bill Act (OBBBA), beginning with the 2025 tax year, anyone age 65 or older can take a new Senior Bonus Deduction of up to $6,000 per person (or $12,000 for couples if both spouses qualify). This deduction is available whether you itemize or use the standard deduction.

There are some income limits: the full deduction is available if your income is below $75,000 (single) or $150,000 (married filing jointly). Above those levels, the deduction gradually phases out.¹

This deduction could also help with Social Security taxes. Even though the rules for taxing Social Security haven’t changed, lowering your taxable income may mean less of your benefit is subject to federal income tax — and in some cases, none at all.

Here's how it works. Adjusted gross income (AGI) is one component of the formula used to calculate provisional income, also known as combined income, which determines how much of your Social Security benefits are subject to federal income tax, based on established tax thresholds. Provisional income is calculated as follows:

AGI + Nontaxable Interest + 50% of Social Security Benefits = Provisional Income

If this deduction brings your provisional income below the IRS thresholds ($25,000 for single filers, $32,000 for couples), your Social Security benefits may no longer be taxed. If your income is higher, the deduction may still reduce the portion of your benefits that’s taxable.

Keep in mind, only a portion of Social Security benefits are subject to federal and, in some cases, state income tax, so no one is ever taxed on the full amount of their Social Security benefit. For assistance in determining if your benefits may be subject to taxes, consult with a tax professional or visit IRS.gov to access the Interactive Tax Assistant (ITA) tool.

To learn more about tax-smart strategies to help you keep more of your income in retirement, contact the office to schedule a time to talk.

^{1) “One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors.” 25 AUG 2025, IRS.gov, https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors.}

Walk This Way Along the Path to Healthy Aging

If you’re looking for ways to maintain or improve important health markers as you age, consider IWT. 

What is IWT?

IWT stands for interval walking training, a science-backed exercise protocol developed by Japanese researchers to improve cardiometabolic health. In layman’s terms, it’s a way for older adults to safely ramp up intensity and reap significant health benefits, such as improved physical fitness, muscle strength, and glycemic control. Unlike high intensity interval training (HIIT), which can be challenging for older adults with joint pain or certain chronic conditions, IWT is accessible for people of all ages and fitness levels.

The standard IWT protocol consists of five sets of the alternating intervals listed below, resulting in about 30 minutes of walking five days per week:

• Fast walking (roughly 3 minutes at roughly 70% of peak aerobic capacity)
• Slow walking (3 minutes at 40% of peak aerobic capacity)

Japanese researchers found that this approach was superior to traditional walking for improving various health markers, including:¹

• Blood pressure
• Blood glucose
• Body mass index (BMI)
• Aerobic capacity
• Strength (an indicator of stability and balance)

Best of all, you can get your intervals in anywhere, whether you’re at home, traveling, at the gym, or visiting a park or shopping mall. The only requirement is a pair of comfortable shoes and room to move.

1) Mammoser, Gigen, “Japanese Walking: Try This Low-Impact Fitness Hack for Better Heart Health.” 27 MAY 2025, Healthline.com, https://www.healthline.com/health-news/japanese-walking-fitness-trend-heart-health.