Tax Advantages for Seniors and Older Taxpayers
Disclaimer: This material is prepared for informational purposes only and is not tax advice. Please speak with a tax professional or view the resources linked in the article to see how this information may apply to you.
With age comes more wisdom… extra tax benefits! Here are some of the benefits that older taxpayers may receive come tax time:
Increased Standard Deduction
Once you turn 65, the IRS rewards you with a bigger standard deduction, which means you get to keep more of your money. The additional deduction depends on your filing status and the amount changes each year. For 2025:
Single or Head of Household: Additional $2,000 deduction
Married Filing Jointly: Additional $1,600 deduction per qualifying spouse
Also, if you’re 65 or older and visually impaired, the additional amount doubles to $4,000 for single and head of household filers and $3,200 for qualifying spouses when married filing jointly.
New $6,000 Deduction
In July 2025, the One Big Beautiful Bill (OBBB) introduced an additional deduction up to $6,000 for individuals 65 and older. This deduction applies to both taxpayers who take the standard deduction or itemize.
However, there is a phase-out limit above $75,000 for individuals and $150,000 for married couples. This additional deduction is available for tax years 2025 through 2028.
Higher Filing Threshold
Since senior citizens have an increased standard deduction, they also have a higher income threshold before needing to file a tax return.
However, some types of income, such as self-employment, have a lower filing threshold regardless of your age. It’s important to understand how different sources of income may affect your filing requirements.
$1,000 Catch Up IRA Contribution
Time is money when contributing to an IRA, and since your money has less time to grow when you contribute at an older age, the IRS allows people to “catch up” with an additional contribution amount. Taxpayers 50 and older can contribute up to an additional $1,000 to their IRA beyond the annual contribution limit.
Qualified Charitable Distribution
If you love giving back, you can receive an additional reward on top of knowing you are contributing to an important cause. For those 70 1/2 and older, you can make a tax-free qualified charitable contribution (QCD) from your traditional IRA account. In 2025, you can donate up to $108,000 to a qualified charity, tax-free.
Additionally, for those 73 and older, QCDs can be used to comply with Required Minimum Distribution (RMD) rules.
Save 20% Off Tax Prep at Northside Tax Service
At Northside Tax Service, we want to help seniors get every break they deserve. That’s why we offer 20% off tax preparation fees for clients 65 and older.
Call us today at (360) 922-0235 to schedule an appointment with one of our experienced tax preparers. We’ll help you take full advantage of every tax benefit available so you can keep more of your hard-earned money.