What is the extra standard deduction for seniors over 65?
The extra standard deduction is a valuable tax benefit for seniors and blind individuals that can significantly lower your tax liability.
Summary
In the US, seniors and legally blind individuals can claim an extra standard deduction tax benefit.
The extra deduction varies based on age, filing status, and blindness.
In 2024, the extra deduction is $1,950 for single/head of household filers and $1,500 per qualifying individual for married couples filing jointly or separately.
What is standard deduction?
The standard deduction is a dollar amount that lowers your taxable income, reducing your tax bill. It's set by the IRS annually and varies based on your filing status.
You can either itemize deductions by listing specific expenses or take the standard deduction. This simpler option is especially helpful for low- and middle-income taxpayers and eliminates detailed record-keeping.
What is the extra standard deduction for seniors over 65?
In addition to the regular standard deduction available to all taxpayers, seniors aged 65 and older qualify for an extra standard deduction. This deduction aims to help seniors reduce their taxable income and lower their tax burden.
The extra standard deduction for seniors in 2023 were as follows:
Single or Head of Household: $1,850
Married Filing Jointly or Separately: $1,500 per qualifying individual (meaning each spouse over 65 could claim this amount)
For previous years, the extra standard deduction amounts were slightly lower, but the principle remained the same. Seniors were entitled to a higher standard deduction than younger taxpayers.
Who is eligible for extra standard deduction?
The extra standard deduction is a valuable tax benefit specifically designed for two groups of taxpayers:
Seniors Aged 65 or Older: To qualify, you must be 65 years old or older by the end of the tax year. For tax purposes, you are considered 65 on the day before your 65th birthday.
Blind Individuals: The additional deduction is also available to taxpayers who are legally blind. Legal blindness is defined by specific criteria, including visual acuity and field of vision restrictions.
Several factors can influence the amount of extra standard deduction you can claim:
Age: If you or your spouse turn 65 during the tax year, you can claim the extra deduction for the entire year.
Filing Status: The amount of the extra deduction varies depending on whether you file as single, head of household, married filing jointly, or married filing separately.
Blindness: If you are both over 65 and blind, you can claim an additional amount for blindness.
What does the extra standard deduction look like in 2024?
In 2024, the extra standard deduction looks like this:
Single or head of household
If you file as single or head of household, and you're either 65 or older or blind, you can claim an additional standard deduction of $1,950 for the 2024 tax year. If you are both 65 or older and blind, you can claim a total extra deduction of $3,900.
Married filing jointly or separately
If you are married and filing jointly or separately, and either you or your spouse is 65 or older or blind, you can each claim an extra standard deduction of $1,550 for the 2024 tax year. If either of you is both 65 or older and blind, that person can claim a total extra standard deduction of $3,900.
What does itemizing deductions mean?
Itemizing deductions means listing specific eligible expenses to reduce your taxable income instead of taking the standard deduction. The extra standard deduction for seniors and blind individuals is applied first, then you compare the total potential itemized deductions to the standard deduction (including the extra amount). If itemized deductions are greater, itemizing is generally more beneficial.
How do you claim extra standard deductions?
Claiming the extra standard deduction for seniors or blind individuals is straightforward and doesn't require any additional forms or schedules. Here's the process:
Complete Form 1040: This is the standard individual income tax return form used by most taxpayers.
Check the Box: On Form 1040, look for the section where you indicate your filing status. There will be boxes to check if you or your spouse are 65 or older or blind. Tick the appropriate boxes based on your eligibility.
Calculate Your Deduction: The tax software or your tax preparer will automatically calculate your total standard deduction, including the extra amount, based on the boxes you checked.
Subtract from AGI: The total standard deduction (including any extra amount) will be subtracted from your adjusted gross income (AGI) to arrive at your taxable income.
Get expert financial advice
Understanding the extra standard deduction for seniors and blind individuals is crucial for tax planning and maximizing tax savings. This additional deduction, which varies based on age and filing status, can significantly reduce taxable income and overall tax liability. However, it's important to consider whether itemizing deductions might be more beneficial in your specific situation. The complexities of extra standard deductions can be overwhelming, which is why seeking professional financial advice is highly recommended.
Let Unbiased match you with an SEC-regulated financial advisor who can offer expert financial advice to optimize your tax returns.
Writers
Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.