Extra tax deductions for seniors
If you don't itemize your deductions, you can get an extra standard deduction if you and/or your spouse are 65 years old or older. These are $1,950 for single filers and $1,550 for married individuals filing jointly.
Social Security can potentially be subject to tax regardless of your age. While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.
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 total, a married couple 65 or older would have a standard deduction of $33,200. You can also itemize individual tax deductions, for things like charitable donations, but they need to add up to more than the standard deduction to make itemizing worthwhile.
What is the senior tax credit? Formally known as the “Credit for the Elderly or the Disabled,” the federal senior tax credit is a credit of $3,750 to $7,500 that lowers federal tax bills for older adults and people who retired on permanent and total disability.
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.
Taxpayers 65 and older qualify for an additional standard deduction, reducing their taxable income. The extra deduction amount differs based on filing status and whether the taxpayer or spouse is blind. The IRS updates the deduction amounts annually for inflation, impacting tax filings.
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.
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.
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.
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.
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.
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).
Is Social Security Taxable After Age 70? There are rumors on the internet that Social Security payments are no longer taxed once you reach a certain age, such as 70. However, this is not true. Social Security payments are taxable from the moment you start receiving them until you die.
If you're over 65 or permanently disabled, you may qualify for the elderly or disabled tax credit. This credit reduces the total amount you owe to the IRS and can lead to a refund if it exceeds your tax liability.
Yes! Taxpayers have the option of deducting their Medicare premiums from their taxes, but there's a catch: you can only deduct expenses that exceed a certain portion of your income. Make too much, or not spend enough, and you're unable to take advantage of this deduction.
Health insurance premiums can be tax deductible when you retire, but it depends on several factors such as your age, the type of health insurance plan that you have and whether you are self-employed or not.
However, you calculate self-employment tax (SE tax) using Schedule SE, Self-Employment Tax, (Form 1040 PDF or 1040-SR). Also, you can deduct the employer-equivalent portion of your SE tax when calculating your adjusted gross income. Wage earners cannot deduct Social Security and Medicare taxes.