Exclusively for older adults: an extra standard deduction to save you money on 2023 taxes (2024)

FAQs

Exclusively for older adults: an extra standard deduction to save you money on 2023 taxes? ›

How much is the additional standard deduction? For tax year 2023, the additional standard deduction amounts for taxpayers who are 65 and older or blind are: $1,850 for single or head of household.

Note: If you are at least 65 years old or blind, you can claim an additional 2023 standard deduction of $1,850 (also $1,850 if using the single or head of household filing status).

Additional standard deduction – You're allowed an additional deduction if you're age 65 or older at the end of the tax year. You're considered to be 65 on the day before your 65th birthday (for tax year 2023, you're considered to be 65 if you were born before January 2, 1959).

If another taxpayer can claim you as a dependent, your standard deduction is limited. For 2023, the standard deduction for dependents is limited to the greater of $1,250 or your earned income plus $400—but the total can't be more than the normal standard deduction available for your filing status.

After an inflation adjustment, the 2023 standard deduction increases to $13,850 for single filers and married couples filing separately and to $20,800 for single heads of household, who are generally unmarried with one or more dependents. For married couples filing jointly, the standard deduction rises to $27,700.

If you are 65 or older AND blind, the extra standard deduction is: $3,700 if you are single or filing as head of household. $3,000 per qualifying individual if you are married, filing jointly or separately.

Bottom Line. Yes, Social Security is taxed federally after the age of 70. If you get a Social Security check, it will always be part of your taxable income, regardless of your age. There is some variation at the state level, though, so make sure to check the laws for the state where you live.

(It isn't taxed, but it goes into the calculation.) If that total exceeds the minimum taxable levels, then at least half of your Social Security benefits will be considered taxable income. You must then take the standard or itemize deductions to arrive at your net income.

If you are at least 65, unmarried, and receive $15,700 or more in nonexempt income in addition to your Social Security benefits, you typically need to file a federal income tax return (tax year 2023).

Can I claim my mother as a dependent if she receives Social Security? ›

The person must have less than $4,700 in taxable income (for 2023). Social Security benefits and other tax-free income don't count for this purpose, but interest, dividends, and taxable pensions do. You must provide over half of their support.

The maximum credit amount is $500 for each dependent who meets certain conditions. This credit can be claimed for: Dependents of any age, including those who are age 18 or older. Dependents who have Social Security numbers or Individual Taxpayer Identification numbers.

Gross income is the total of your unearned and earned income. If your gross income was $4,700 or more, you usually can't be claimed as a dependent unless you are a qualifying child. For details, see Dependents.

To reap the benefits of deductions without the hassle of itemization, Backman notes you'll need line items that fall into these categories — contributions to your IRA, contributions to your HSA (health savings account), expenses you incur as a teacher like purchasing classroom supplies, and interest on student loans.

For 2023, the standard deduction increased to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850 for 2023, an increase from $12,950. Enacted via the Tax Cuts and Jobs Act of 2017, the higher standard deduction is slated to sunset in 2026, along with lower tax rates.

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.