by PHOENIX, Ariz. – For retirees in Arizona, managing living costs on a fixed income often means making every dollar count. Fortunately, both federal and state tax laws provide relief for seniors, including an extra standard deduction for individuals aged 65 and older. This deduction helps reduce taxable income, leaving more money in seniors’ pockets to cover essential expenses like healthcare, groceries, and housing.
If you are over 65 or planning ahead for retirement in Arizona, here’s a detailed look at how the standard deduction works—and how you can benefit.
What Is the Standard Deduction?
The standard deduction is a set dollar amount that reduces your taxable income, making it one of the simplest and most widely used tax benefits. Instead of itemizing every expense, most taxpayers simply take the standard deduction.
For seniors, there’s an added benefit: once you turn 65, you qualify for an extra standard deduction at both the federal and state level.
Federal Standard Deduction for Seniors
For the 2024 tax year, the federal standard deduction amounts are:
- $14,600 for single filers
- $29,200 for married couples filing jointly
In addition, seniors receive an extra deduction:
- $1,950 if filing single or head of household and 65+
- $1,550 per spouse if married filing jointly and at least one spouse is 65+
This means a married couple where both spouses are over 65 can add $3,100 to their standard deduction, bringing their total to $32,300.
Arizona’s Standard Deduction Rules
Arizona generally mirrors federal rules but sets its own deduction amounts.
For the 2024 tax year, Arizona’s standard deduction is:
- $13,850 for single filers
- $27,700 for married couples filing jointly
Seniors receive an extra deduction if they are 65 or older:
- $1,500 for single filers or heads of household
- $1,200 per spouse for married couples filing jointly
That means:
- A single filer over 65 in Arizona can claim $15,350 total.
- A married couple where both spouses are over 65 can claim $30,100 total.
Read Also: Understanding the North Carolina Extra Standard Deduction for Seniors Over 65
Who Qualifies for Arizona’s Extra Deduction?
To take advantage of Arizona’s extra standard deduction:
- You must be 65 or older by the end of the tax year.
- You must claim the standard deduction (those who itemize cannot also claim the extra deduction).
- You must be a legal Arizona resident filing a state income tax return.
Why This Matters for Arizona Seniors
Living on Social Security, pensions, or retirement savings can be challenging, especially with rising costs of living. The extra standard deduction reduces taxable income, lowering your overall state tax liability. This means seniors can preserve more of their retirement income, helping with everyday expenses.
Arizona’s tax system is considered senior-friendly, especially when combined with other state-level benefits, such as exemptions for Social Security income and partial exemptions for military retirement pay.
Filing Tips for Seniors in Arizona
- Check both federal and state rules to ensure you claim the full extra deduction.
- Review your filing status carefully—married couples filing jointly may see greater benefits if both spouses are eligible.
- Use tax preparation software or a professional preparer to avoid missing out on benefits.
- Explore additional Arizona senior benefits, such as property tax relief programs available in certain counties.
Summary Table
| Category | Single Filer | Married Filing Jointly |
|---|---|---|
| Federal Standard Deduction (2024) | $14,600 | $29,200 |
| Federal Extra Deduction (65+) | +$1,950 | +$1,550 per spouse |
| Arizona Standard Deduction (2024) | $13,850 | $27,700 |
| Arizona Extra Deduction (65+) | +$1,500 | +$1,200 per spouse |
Final Thoughts
Arizona seniors over 65 have a clear opportunity to save money at tax time with the extra standard deduction. By combining federal and state benefits, retirees can significantly reduce taxable income and keep more money available for daily living expenses. For many, these tax breaks can make a meaningful difference in maintaining financial stability during retirement.
Are you a senior in Arizona planning to use the extra deduction this year? Share your experiences in the comments at ibwhsmag.com.
