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
The IRS considers an individual to be 65 on the day before their 65th birthday. The standard deduction for those over age 65 in tax year 2023 (filing in 2024) is $15,700 for singles, $29,200 for married filing jointly if only one partner is over 65 (or $30,700 if both are) and $22,650 for head of household.
What is the standard deduction for age 65 and older? ›
The IRS considers an individual to be 65 on the day before their 65th birthday. The standard deduction for those over age 65 in tax year 2023 (filing in 2024) is $15,700 for singles, $29,200 for married filing jointly if only one partner is over 65 (or $30,700 if both are) and $22,650 for head of household.
Do seniors over 65 get an extra tax deduction? ›
If you're married, filing jointly or separately, the extra standard deduction amount was $1,500 per qualifying individual. If you are 65 or older and blind, the extra standard deduction for 2024 is $3,900 if you are single or filing as head of household.
How does the IRS determine a taxpayer at age 65? ›
Age is a factor in determining if you must file a return only if you are 65 or older at the end of your tax year. For 2023, you are 65 or older if you were born before January 2, 1959.
At what age is social security no longer taxed? ›
Social Security tax FAQs
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
How much can a senior citizen make without paying taxes? ›
If you are at least 65, unmarried, and receive $15,700 or more in nonexempt income in addition to your Social Security benefits, you typically need to file a federal income tax return (tax year 2023).
Does the standard deduction apply to social security income? ›
At least half your Social Security benefits will be considered taxable income if that total exceeds the minimum taxable levels. You must then take the standard or itemize deductions to arrive at your net income.
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.
Can you deduct health insurance premiums without itemizing? ›
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.
Can I get a tax refund if my only income is social security? ›
You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.
You will pay federal income taxes on your benefits if your combined income (50% of your benefit amount plus any other earned income) exceeds $25,000/year filing individually or $32,000/year filing jointly. You can pay the IRS directly or have taxes withheld from your payment.
Do seniors have to file taxes if only income is social security? ›
Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.
Does everyone get standard deductions? ›
Standard deduction
It varies by filing status, whether the taxpayer is 65 or older and/or blind and whether another taxpayer can claim them as a dependent. Taxpayers cannot take the standard deduction if they itemize their deductions. Taxpayers can refer to Topic No. 501, Should I Itemize?, for more information.
How do I get the $16728 Social Security bonus? ›
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
What is the extra standard deduction for seniors over 65? ›
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.
When a husband dies, does his wife get his Social Security? ›
Social Security survivors benefits are paid to widows, widowers, and dependents of eligible workers. This benefit is particularly important for young families with children.
How much of my social security income is taxable? ›
Substantial income includes wages, earnings from self-employment, interest, dividends, and other taxable income that must be reported on your tax return. Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. More than $34,000, up to 85% of your benefits may be taxable.
How do I determine my standard deduction? ›
Key Takeaways
- The standard deduction is the portion of income not subject to tax that can be used to reduce your tax bill.
- For 2023, the standard deduction is $13,850 for individuals, $27,700 for joint filers, or $20,800 for heads of household. ...
- The IRS adjusts the standard deduction each year for inflation.
Standard Deduction under Income Tax Act refers to a deduction allowed under the head salaries. The previous Union FM Jaitley introduced Standard Deduction of Rs. 40,000 in Budget 2018 that was increased to Rs 50,000 in 2019.
Are medicare premiums tax deductible? ›
Yes, Medicare premiums are tax deductible as a medical expense as long as you meet two requirements. First, you must itemize your deductions on your tax return to deduct them from your taxable income. Second, only medical expenses that exceed 7.5% of your adjusted gross income (AGI) are deductible.
