Standard Deduction Amounts

Question: Can I take a higher standard deduction if I’m over 65?

Answer: Yes.

Pursuant to the 2017 tax reform law, taxpayers can claim a standard deduction of up to $12,000 ($24,000 for married couples filing jointly), effective with 2018 tax returns. In 2020, the maximum allowed standard deduction became $12,400 for singles and $24,800 for married filing jointly. People aged 65 or more can benefit from an extra $1,650 in 2020 if they’re filing as single or head of household. In the case of married couples, if one of the spouses is 65 or more, they can get an extra $1,300. If both spouses are 65 or older, the standard deduction increases by $2,600.

See also 9 Types of Income That Can’t Be Taxed During Retirement.