Dividend Income Senior Bonus Calculator
For 65+ filers whose income is qualified dividends.
The short answer: At the numbers below, the deduction is $3,900 — $858 back at 22% ($33 per paycheck).
Must be 65+ to qualify
Modified Adjusted Gross Income
Senior Bonus Deduction
$3,900
⚠ Reduced from $6,000 due to income phase-out
⚠️ 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.
Dividends Are MAGI Too
Qualified dividends count fully toward MAGI for the phase-out — a $200k dividend portfolio can erase the bonus.
- • Phase-out reduces the $6,000 progressively
- • Dividend tax rates (0/15/20%) unchanged by this deduction — it reduces ordinary income
- • The calculator applies the phase-out line by line
Worked Example
Single senior, $110,000 MAGI mostly dividends.
- • Deduction $3,900; savings $858 at the 22% rate
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Frequently Asked Questions
Do dividends count against the senior deduction?
Yes — dividends are part of MAGI, which drives the phase-out of the $6,000 bonus.
Does the deduction lower my dividend tax rate?
No — it's a deduction from ordinary income; qualified dividend rates are computed separately.