Tax season eventually comes for everyone, but for Americans aged 65 and older, the rules shift in ways that can genuinely ease the financial load. Many seniors live on fixed incomes, face higher medical costs, and rely on retirement savings that need to last for years. The tax code acknowledges those realities, offering benefits that many retirees either overlook or misunderstand. Two of the most important are the Additional Standard Deduction for adults 65+ and the Credit for the Elderly or Disabled. Both can significantly reduce what seniors owe, and understanding how they work can help protect more of their income.
The first benefit — the Additional Standard Deduction — is simple and automatic. Anyone who is 65 or older by the end of the tax year qualifies for an extra deduction on top of the regular standard deduction. There’s no special form, no complicated process — just a box to check on Form 1040 or 1040-SR. The IRS counts you as 65 the day before your birthday, so as long as you reach that milestone during the year, you qualify. The amount adjusts each year for inflation, which quietly gives retirees a little more room to shield their income. This deduction exists for a very clear reason: to reduce taxable income for older adults who often have higher expenses and fewer ways to increase earnings.
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