When seniors hit retirement, one thing that they may be able to look forward to is tax breaks for those of a certain age group. Individuals who are 65 years old or blind can claim an additional $1,300-$1,700 standard deduction.
The Internal Revenue Service (IRS) gives seniors a more significant standard deduction when they turn 65. A standard tax reduction is a part of your income that is not taxed, thus reducing your overall tax bill.
This figure is affected by several factors, including your age, filing status, if you are dependent or not, among many others. For tax returns filed in 2021, in addition to whatever amount of standard deduction you are eligible for, you can also add another $1,650. This applies to those who are the head of a household or single.
If you are married and file for joint returns, then each spouse aged 65 and above can get an additional $1,300. When taxes are filed in 2022, you can get $1,700 if the first scenario applies to you and $1,350 if the second situation applies.
This additional standard deduction for seniors aged 65 and above will apply if you do not itemize deductions. If you are legally blind, or if you are married to someone who is blind, this amount can be increased as well.
You have the option to claim this standard deduction or itemize it on your tax returns. When you itemize deductions, these are the expenses the IRS allows to be reduced from your taxable income.
To make a decision between the two options, check the amounts offered. If the amount of the standard deduction is more than that of the itemized deductions, you should definitely consider taking it.
The standard deduction for seniors over 65 is quite significant, so make sure that you do not miss out on this opportunity from the IRS. Check out some of our previous articles for more information about tax benefits for seniors. Contact Senior Strong today!
Charlotte Senger is a senior discount expert who handles all financial concerns and ensures that seniors are able to save money. She got her bachelor’s degree in Accounting from the University of Texas.