- The bigger standard deduction for seniors 65 and older – If you and your spouse are 65 or older, you can claim a larger standard deduction, as long as you didn’t itemize your tax deductions. The standard deduction for retirees is $1,650 higher than the deduction for those younger than 65, who file as individuals. Those who are joint fillers can increase their standard deduction by $1,300, with the specification that one member of the couple must be 65 or older. If they’re both at least 65, married couples can increase the deduction up to $2,600. Even more, if you or your spouse are blind, you qualify for an even higher deduction.
- Higher tax-filing threshold – Older people can earn a bit more income before submitting a tax return, in comparison with younger workers. People aged 65 and older are able to earn a gross income of up to $14,050, before being obliged to file a tax return, which is $1,650 more favorable than for younger workers. The tax-filing threshold is $27,400 for married couples, where both spouses are 65 and older, and $26,100 for those couples where only one spouse is at least 65.
- Property tax breaks – When it comes to property, tax rules vary by state and local jurisdiction. Even so, in some places, people who are above a certain age and who earn below a specific income can qualify for property or school tax deferrals or exemptions.
- Credit for the elderly or disabled – If you or your spouse are 65 or older, you’re eligible to claim a tax credit. Retirees may be able to reduce their tax bills by deciding to take credit, but they have to qualify. Retirees must have an adjusted gross income below $17,500, or $25,000 if both spouses are 65 and older. They can also qualify for nontaxable Social Security and pension income below $5,000 to claim the credit.
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