What St. Augustine Retirees Need to Know About the New $6,000 Deduction

Written by Lisa Whitley

If you’ve walked past a news-stand lately, you might have seen First Coast Accounting featured in St. Augustine Social. In that article, we talked about our mission to bring clarity to our community. Today, we’re doing just that by breaking down one of the most significant changes in the new tax code: The Enhanced Senior Deduction.

For years, tax laws stayed relatively static for those in retirement. But under the recent federal “One Big Beautiful Bill,” there’s a new opportunity to keep more of your hard-earned money.

What is the New Senior Tax Deduction?

Beginning in 2025 and continuing until 2028, individuals 65 years old or older will be eligible for a $6,000 additional deduction over the standard deduction.

If you’re a married couple, and you both are 65 years old or older, you can get a $12,000 boost to your non-taxable earnings.

Why this matters for the First Coast

St. Augustine has a vibrant senior and retiree community. This deduction can provide immediate relief, whether you’re on a “permanent holiday” or working as a consultant in your golden years.

Here are some quick facts about

Age rule: Must be 65 years old by the end of the tax year.
The Income Limit: This deduction begins to phase out if your modified adjusted gross income (MAGI) is over $75,000 (for individuals) or $150,000 (for joint filers).
No itemizing required: This can be claimed even if you choose the standard deduction.

Restoring Sanity in Your Retirement

First Coast Accounting often witnesses seniors feeling stressed out by “tax shocks” when they begin taking RMDs or selling assets. Lisa Whitley’s philosophy–“Outsource the tough stuff and put your energies into your life”–applies just as much to retirees as it does to business owners.

Your nest egg is the result of your hard work. It’s our job to ensure that the “new rules”, which are designed to benefit you, do not work against you.

Are you Maximizing your Savings?

Tax law is moving faster than ever right now. From the new senior deduction to the “Trump Accounts” for grandkids, the landscape is shifting.

If you want to ensure you aren’t leaving money on the table this year, let’s chat. We’re proud to be St. Augustine’s choice for compassionate, expert accounting–as seen in St. Augustine Social!