What is the Extra Standard Deduction?
The extra standard deduction for seniors is an amount that is added to the regular standard deduction. For 2020, the extra standard deduction is $1,350 for single filers and $2,700 for married couples filing jointly.
Who is Eligible for the Extra Standard Deduction?
You are eligible for the extra standard deduction if you are age 65 or older by the end of the tax year. You do not need to be retired to claim the extra standard deduction.
How to Claim the Extra Standard Deduction
You can claim the extra standard deduction on your federal income tax return. The extra standard deduction is claimed on line 12 of the Form 1040.
Benefits of the Extra Standard Deduction
The extra standard deduction can reduce your taxable income, which can save you money on your taxes. The extra standard deduction can also help you to qualify for certain tax credits and deductions.
Example
Let’s say that you are a single taxpayer who is age 65 or older. Your taxable income is $25,000. The regular standard deduction for 2020 is $12,400. With the extra standard deduction, your total standard deduction is $13,750. This means that your taxable income is reduced to $11,250.
The extra standard deduction for seniors is a valuable tax break that can save you money on your taxes. If you are age 65 or older, be sure to claim the extra standard deduction on your tax return.
Additional Information
In addition to the extra standard deduction, there are a number of other tax breaks that are available to seniors. These tax breaks include:
- The Social Security tax exemption: Social Security benefits are not subject to federal income tax for taxpayers who are age 65 or older.
- The Medicare Part B premium deduction: Seniors who are age 65 or older can deduct the cost of their Medicare Part B premiums on their federal income tax returns.
- The long-term care insurance deduction: Seniors who are age 65 or older can deduct the cost of their long-term care insurance premiums on their federal income tax returns.
These are just a few of the tax breaks that are available to seniors. For more information, please consult with a tax professional.