Senior Hobby Income Bonus Calculator
For 65+ makers with modest side income.
The short answer: At the numbers below, the deduction is $12,000, worth $1,440 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.
Hobby vs Business After 65
Occasional craft-fair income (hobby) reports as other income; regular Etsy shops are businesses. Either way, the senior bonus applies — the fork matters for expense deductions, not this one.
- • Senior bonus: applies with either classification
- • Hobby income adds to MAGI (usually harmlessly)
- • A real business adds Schedule C and SE tax considerations
Worked Example
MFJ couple with modest craft income, $68,000 MAGI.
- • Deduction $12,000; savings $1,440 at 12%
Frequently Asked Questions
Does hobby income affect the OBBBA senior deduction?
It adds to MAGI, but hobby-level amounts almost never reach the phase-out.
Should I call my craft sales a business?
That's about expenses and SE tax, not this deduction — the senior bonus applies either way.