403(b) & Church Plan Senior Bonus Calculator
For 65+ educators and clergy retirees.
The short answer: At the numbers below, the deduction is $12,000 — $1,440 back at 12% ($55 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.
Pension-Type Income, Same Bonus
403(b) distributions, church-plan pensions, and housing allowances all land in MAGI — usually far below phase-out territory.
- • 403(b)/church plan income → MAGI → deduction survives
- • Clergy housing allowance → excluded from income; doesn't push MAGI
- • Both spouses 65+ → $12,000 base
Worked Example
MFJ retired teacher + nurse, $72,000 MAGI.
- • Deduction $12,000; savings $1,440 at 12%
Keep Reading
Frequently Asked Questions
Do 403(b) distributions count against the senior deduction?
They're part of MAGI, but at typical teacher-pension levels the phase-out isn't reached.
Is a clergy housing allowance part of MAGI?
The excludable housing allowance isn't gross income, so it doesn't push the phase-out.