You’ve probably heard about the standard deduction, but did you know that the tax code offers a perk in the form of an extra standard deduction for people aged 65 or older?
For eligible older adult filers, the additional deduction stacks on the regular standard deduction and can further reduce taxable income. That, in turn, can increase the amount of hard-earned money you keep in retirement.
Here’s more of what you need to know.
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What’s the 2023 standard deduction?
Before delving into the extra standard deduction for older adults aged 65 and older, reviewing how the regular standard deduction works is helpful.
The standard deduction is a predetermined amount that reduces your taxable income, lowering the income subject to tax. In most cases, whether to take the standard deduction (which most taxpayers choose to do) is up to you. (However, some taxpayers cannot claim the standard deduction.)
The alternative is to itemize deductions, which involves claiming individual deductions on your federal income tax return. Common itemized deductions include things like mortgage interest and charitable donations.
The amount of your standard deduction depends on several different factors. For example:
- Your filing status
- Whether you are 65 or older
- Whether you are blind
- Whether another taxpayer can claim you as a dependent on their tax return
For 2023 (tax returns typically filed in April 2024), the standard deduction amounts are $13,850 for single and for those who are married, filing separately; $27,700 for those married filing jointly and qualified widowers; and $20,800 for head of household.
What about 2024? Note: The IRS adjusts the standard deduction annually for inflation. The agency released 2024 standard deduction amounts that will apply to the returns you normally file in 2025. (More on those below.)
For more on the 2023 and 2024 standard deduction: What’s the Standard Deduction?
IRS extra standard deduction for older adults
When you turn 65, you become eligible for an additional standard deduction on top of the regular standard deduction. However, the amount of this extra deduction can vary based on factors like filing status and whether you or your spouse are 65 or older. Whether you or your spouse is blind is another factor.
For 2023, the additional standard deduction is $1,850 if you are single or file as head of household. If you're married, filing jointly or separately, the extra standard deduction amount is $1,500 per qualifying individual.
If you are 65 or older and blind, the extra standard deduction is $3,700 if you are single or filing as head of household. It's $3,000 per qualifying individual if you are married, filing jointly or separately.
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2023 Extra Standard Deduction for Age 65 and Older (Single or Head of Household)| 65 or older or blind | $1,850 |
| 65 or older and blind | $3,700 |
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2023 Extra Standard Deduction Age 65 or Older (Married Filing Jointly or Separately)| 65 or older or blind | $1,500 per qualifying individual |
| 65 or older and blind | $3,000 per qualifying individual |
Note: For the additional standard deduction for people who are blind, you have to be completely blind by the end of a given tax year. Or, you have to have a doctor's certification (in this case, an ophthalmologist or optometrist) that your eyesight is at least 20/200 (in the best eye with corrective lenses.) Or, your doctor must certify that your field of vision is 20 degrees or less.
2024 standard deduction over 65
The just-released additional standard deduction amount for 2024 (returns usually filed in early 2025) is $1,550 ($1,950 if unmarried and not a surviving spouse). See the charts below.
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2024 Extra Standard Deduction Age 65 or Older (Single or Head of Household)| 65 or older or blind | $1,950 |
| 65 or older and blind | $3,900 |
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2024 Extra Standard Deduction Age 65 and Older (Married Filing Jointly or Separately)| 65 or older or blind | $1,550 per qualifying individual |
| 65 or older and blind | $3,100 per qualifying individual |
Claiming the extra standard deduction
As retirees tend to face rising medical and other expenses, the extra standard deduction for individuals 65 and older can help alleviate tax burdens by reducing taxable income. This boost may free up funds for essential needs, leisure activities, or to support loved ones.
If you are eligible to claim the extra standard deduction and aren’t sure how it impacts your tax liability, consult a trusted tax professional or official IRS resources to maximize your tax benefits.
Related Content
- What’s the Standard Deduction?
- Federal Income Tax Brackets and Rates
- How Retirement Income is Taxed by the IRS
- Calculating Taxes on Social Security Benefits
FAQs
How much is the additional standard deduction? For tax year 2023, the additional standard deduction amounts for taxpayers who are 65 and older or blind are: $1,850 for single or head of household.
Do people over 65 get a higher standard deduction? ›
When you turn 65, you become eligible for an additional standard deduction on top of the regular standard deduction. However, the amount of this extra deduction can vary based on factors like filing status and whether you or your spouse are 65 or older.
Do 65 year olds get extra tax deduction? ›
Extra standard deduction for people over 65
But a single 65-year-old taxpayer will get a $15,700 standard deduction for the 2023 tax year. The extra $1,850 will make it more likely that you'll take the standard deduction on your 2023 return rather than itemize. (The extra standard deduction amount is $1,850 for 2024).
What is the extra personal exemption for age 65? ›
Every California taxpayer is entitled to personal exemption or dependent credits for all the members of the household. An additional credit can be claimed for any person in a household who is (a) age 65 or older on the last day of the tax year; or (b) blind.
What is the 2121 standard deduction over 65? ›
Standard Deduction Exception Summary for Tax Year 2021
If BOTH you and your spouse are 65 or older, your standard deduction increases by $2,700. If one of you is legally blind it increases by $1,350, and if both are, it increases by $2,700. As qualifying widow(er) it increases by $1,350 if you are 65 or older.
At what age do seniors stop paying federal taxes? ›
Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a return for tax year 2023 (which is due in 2024) if your gross income is $15,700 or higher. If you're married filing jointly and both 65 or older, that amount is $30,700.
Who gets a higher standard deduction? ›
For 2023, the federal standard deduction for single filers was $13,850, for married filing jointly it was $27,700 and for the head of household filers, it increased to $20,800. Individuals who are at least partially blind or at least 65 years old get a larger standard deduction.
Does the standard deduction apply to Social Security income? ›
(It isn't taxed, but it goes into the calculation.) If that total exceeds the minimum taxable levels, then at least half of your Social Security benefits will be considered taxable income. You must then take the standard or itemize deductions to arrive at your net income.
Will standard deduction change in 2024? ›
For single taxpayers, the standard deduction rose to $14,600, a $750 increase from the previous year. Heads of households, or unmarried taxpayers who have dependents and pay for more the half of the expenses of a household, can take a standard deduction of $21,900 in 2024, an increase of $1,100 from 2023.
What is the IRS loophole to protect retirement savings? ›
Variable life insurance tax benefits are essentially an IRS loophole of section 7702 of the tax code. This allows you to put cash (after-tax money) into a policy that is invested in the stock market or bonds and grows tax-deferred.
Health insurance premiums are deductible if you itemize your tax return. Whether you can deduct health insurance premiums from your tax return also depends on when and how you pay your premiums: If you pay for health insurance before taxes are taken out of your check, you can't deduct your health insurance premiums.
What is the federal elderly tax credit? ›
Generally, the elderly or disabled tax credit ranges between $3,750 and $7,500; it is 15% of the initial amount, less the total of nontaxable social security benefits and certain other nontaxable pensions, annuities, or disability benefits you've received.
How much of my Social Security is taxable? ›
Single filers with a combined income of $25,000 to $34,000 must pay income taxes on up to 50% of their Social Security benefits. If your combined income is more than $34,000, you will pay taxes on up to 85% of your Social Security benefits. Do you need help figuring out your required minimum distributions?
What is the new 1040 form for seniors? ›
Form 1040-SR is available as an optional alternative to using Form 1040 for taxpayers who are age 65 or older. Form 1040-SR uses the same schedules and instructions as Form 1040 does.
What is the standard deduction for married filing jointly over 65 in 2024? ›
Each joint filer 65 and over can increase the standard deduction by $1,550 apiece, for a total of $3,100 if both joint filers are 65-plus. In total, a married couple 65 or older would have a standard deduction of $32,300.
Will the standard deduction change in 2025? ›
All of the individual tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) expire at the end of 2025. Among the changes: Individual income tax rates will revert to their 2017 levels. The standard deduction will be cut roughly in half, the personal exemption will return while the child tax credit (CTC) will be cut.
What age does your tax bracket change? ›
Once you turn 50, and especially after age 65, you can qualify for extra tax breaks. Older people get a bigger standard deduction, and they can earn more before they have to file a tax return at all. Workers over 50 can also defer or avoid taxes on more money using retirement and health savings accounts.
When did the standard deduction get so high? ›
The standard deduction reduces a taxpayer's taxable income by a set amount determined by the government. It was nearly doubled for all classes of filers by the 2017 Tax Cuts and Jobs Act (TCJA) as an incentive for taxpayers not to itemize deductions when filing their federal income taxes.
