Personal Finance

Additional Tax Deduction for People Over 65 in 2025: Exact Amount Revealed

The IRS has announced positive changes to tax credits and deductions for those over 65, including an extra deduction for single or household heads, and married couples over 6.

Tax Deduction for People Over 65: The IRS has shared some good news for taxpayers in 2025. Many tax credits and deductions will see positive changes due to inflation adjustments. These changes will help people save more money, especially seniors aged 65 and older.

The standard deduction, which most people use instead of listing out their expenses, is also getting bigger. This is great because about 90% of taxpayers choose the standard deduction to make filing taxes easier.

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Who Can Get the Extra Deduction?

The extra standard deduction is for people who are 65 or older in 2025. If you are single or the head of your household, your extra deduction will go up a little. In 2024, it was $1,950, but in 2025, it will be $2,000. Married couples over 65 who file taxes together will also get a small increase. If one spouse is 65 or older, the extra deduction will rise from $1,550 in 2024 to $1,600 in 2025. If both spouses are 65 or older, they will get an extra $100 in total compared to 2024.

For blind taxpayers in the same age group, the extra deduction will be double the usual amount. Married couples filing jointly can get up to $3,200 as an additional deduction if both spouses qualify.

Changes to the Standard Deduction

The standard deduction is increasing for everyone in 2025. Single filers will see their deduction go up by $400 to $15,000. Married couples filing together will get an $800 increase, bringing their deduction to $30,000. Heads of households will get a $600 boost, making their deduction $22,500.

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These changes mean taxpayers will have less taxable income, which can lower their tax bills. This is especially helpful for seniors and others who rely on the standard deduction to simplify their tax filing.

With these adjustments, more people, especially seniors, can keep more of their money. The higher standard deduction and extra benefits for older taxpayers will make a big difference for many families. It’s important to stay updated on these changes to make the most of your tax return in 2025.

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