Rental Income Senior Bonus Calculator
For 65+ filers with rental properties.
The short answer: At the numbers below, the deduction is $11,400 — $2,508 back at 22% ($96 per paycheck).
Must be 65+ to qualify
Modified Adjusted Gross Income
Senior Bonus Deduction
$11,400
⚠ Reduced from $12,000 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.
Rents Push MAGI
Net rental income counts toward MAGI — depreciated cash flow can hide the phase-out danger.
- • MAGI uses net rental profit, not gross rent
- • Two 65+ spouses: $12,000 base before phase-out
- • Passive-loss limits may apply before MAGI is even computed
Worked Example
MFJ senior landlords, $155,000 MAGI including rents.
- • Deduction $11,400; savings $2,508 at 22%
Keep Reading
Frequently Asked Questions
Does rental income reduce the OBBBA senior deduction?
It can — net rental income counts in MAGI, which phases out the $6,000-per-person bonus.
Gross rents or net?
Net rental income (after expenses and depreciation) is what feeds MAGI.