Annuity Ladder Senior Bonus Calculator
For 65+ filers drawing SPIA and deferred annuities.
The short answer: At the numbers below, the deduction is $12,000, worth $2,640 at 22% ($102 per paycheck).
Must be 65+ to qualify
Modified Adjusted Gross Income
Senior Bonus Deduction
$12,000
✅ You qualify for the full deduction
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
Annuity Payouts Are MAGI
Each rung of the ladder adds taxable payout — exclusions (return of basis) reduce it, but phase-out danger builds.
- • Taxable annuity portion → MAGI
- • Exclusion ratio (basis return) → not MAGI
- • Roth conversions sit outside MAGI — see the Roth page
Worked Example
MFJ couple, $130,000 MAGI from laddered annuities.
- • Deduction $12,000; savings $2,640 at 22%
Keep Reading
Frequently Asked Questions
Do annuity payouts phase out the senior deduction?
The taxable portion does; the return-of-basis exclusion doesn't.
Does buying more annuity income hurt my deduction?
It raises MAGI, which can reduce the $6,000 bonus — factor that into payout sizing.