Corrections & Clarifications: An earlier version of this story misstated the year used by the IRS to determine whether you qualify for an extra tax deduction at age 65. The mistake was caused by an error on the IRS website. A corrected version follows.
Older adults found some relief from inflation last year after the largest cost-of-living adjustment for Social Security in 40 years.
But the tax man is coming, and people may want to find ways to reduce their taxable income.
One way is to take the extra standard deduction.
Everyone knows about the standard deduction, which is a flat dollar amount determined by the IRS that lowers your taxable income without having to itemize deductions like mortgage interest and charitable donations. But there’s an extra one − on top of the standard deduction − available to people 65 years and older at the end of the tax year.
A larger overall deduction for older adults further reduces their taxable income, and that means a smaller tax bill and more money in your pocket.
Here’s how it works.
Who’s eligible for the extra standard deduction?
Taxpayers who are 65 years or older. The amount of the additional standard deduction varies depending on filing status; whether you or your spouse is at least 65 years old; and whether you or your spouse is blind.
For tax year 2023, you’re considered 65 if you were born before Jan. 2, 1959, the IRS said. If you or your spouse were also legally blind by year’s end or have a doctor’s note…
