Rise in standard deductions
For heads of households, it is $22,500 for tax year 2025, up $600 from tax year 2024. For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction increases to $15,000 for 2025, up $400 from 2024.
After an inflation adjustment, the 2024 standard deduction increases to $14,600 for single filers and married couples filing separately and to $21,900 for single heads of household, who are generally unmarried with one or more dependents. For married couples filing jointly, the standard deduction rises to $29,200.
For single filers and heads of households age 65 and over, the additional standard deduction will increase slightly — from $1,950 in 2024 (returns you'll file soon in early 2025) to $2,000 in 2025 (returns you'll file in early 2026).
3. Additional Standard Deduction for Taxpayers 65+ in 2025. Single Filers and Heads of Household: The additional deduction for those aged 65 or older will increase from $1,950 (2024) to $2,000 in 2025.
Taxes aren't determined by age, so you will never age out of paying taxes. People who are 65 or older at the end of 2024 have to file a return for tax year 2024 (which is due in 2025) if their gross income is $16,550 or higher. If you're married filing jointly and both 65 or older, that amount is $32,300.
In 2024, these deductions include up to $10,000 for a combination of state and local property taxes and state and local sales or income taxes paid;5 home mortgage interest paid on mortgage debt of $750,000 or less;6 eligible charitable contributions; certain investment interest; medical expenses above 7.5% of a ...
To get the most out of your benefit you need to plan carefully, however, since you could owe income taxes on as much as 85% of your Social Security. $45,864: Maximum Social Security benefit for someone retiring at full retirement age in 2024. 85%: Maximum portion of Social Security benefits subject to income taxes.
For 2024, the standard deduction amount has been increased for all filers. The amounts are: Single or Married filing separately—$14,600; Married filing jointly or Qualifying surviving spouse—$29,200; and.
The standard deduction for 2024 is $14,600 for single filers and married people filing separately, $21,900 for heads of household, and $29,200 for joint filers and surviving spouses.
You report the taxable portion of your Social Security benefits on line 6b of Form 1040 or Form 1040-SR. Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.
The Tax Cuts and Jobs Act eliminated or limited many deductions, credits, and limits, including the standard deduction, until Dec. 31, 2025.
If you owe money to a federal or state agency, the federal government may use part or all of your federal tax refund to repay the debt. This is called a tax refund offset. If your tax refund is lower than you calculated, it may be due to a tax refund offset for an unpaid debt such as child support.
Gift tax limit 2024
The gift tax limit, also known as the gift tax exclusion, is $18,000 for 2024. This amount is the maximum you can give a single person without having to report it to the IRS. For married couples, the limit is $18,000 each, for a total of $36,000.
At what age is Social Security no longer taxable? 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.
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.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
The personal exemption for 2024 remains at $0 (eliminating the personal exemption was part of the Tax Cuts and Jobs Act of 2017 (TCJA).
Standard deduction for seniors – If you do not itemize your deductions, you can get a higher standard deduction amount if you and/or your spouse are 65 years old or older. You can get an even higher standard deduction amount if either you or your spouse is blind.
For tax year 2024, your additional standard deduction based on age or blindness is $1,550 or increases to $1,950 if you're also unmarried and not a surviving spouse.
While most federal income tax laws apply equally to all taxpayers, regardless of age, there are some provisions that give special treatment to older taxpayers. The following are some examples. Higher gross income threshold for filing. You must be age 65 or older at the end of the year to get this benefit.
Standard Deductions for Retirees
The standard deductions for 2024 are $14,600 for single taxpayers and married taxpayers filing separately, $29,200 for married taxpayers filing jointly, and $21,900 for heads of household. You won't owe any taxes if your taxable total income falls below these amounts.