by Little Rock, AR – Seniors in Arkansas are set to benefit from important tax relief measures in 2025, including the extra standard deduction for taxpayers over 65. While Arkansas already offers several retirement-friendly tax breaks, this federal deduction plays a key role in lowering taxable income and helping older residents keep more of their retirement savings.
This article explains how the extra standard deduction works, who qualifies, how much seniors can claim in 2025, and what other benefits Arkansas retirees should be aware of.
What Is the Extra Standard Deduction?
The extra standard deduction is a federal tax benefit available to seniors who are 65 years or older by the end of the tax year. It’s an addition to the standard deduction that every taxpayer is entitled to claim, allowing seniors to further reduce their taxable income.
The deduction helps retirees on fixed incomes—such as Social Security, pensions, or retirement accounts—by lowering their federal tax bills and leaving more money available for living expenses.
Who Qualifies in Arkansas?
To claim the deduction, you must:
- Be 65 years of age or older by December 31 of the tax year.
- File taxes as single, head of household, or married filing jointly.
- Provide proof of age if requested (driver’s license, birth certificate, or passport).
Married couples filing jointly can each claim the extra deduction if both are 65 or older, effectively doubling the tax savings.
Deduction Amounts for 2025
For the 2025 tax year, the extra standard deduction remains an important benefit:
- Single or Head of Household seniors: $1,550 additional deduction.
- Married Filing Jointly (per spouse 65+): $1,250 each.
This means a senior filing alone could reduce taxable income by $1,550 extra, while a married couple where both spouses are over 65 could reduce taxable income by $2,500 extra.
These amounts are added to the regular federal standard deduction, which is automatically adjusted for inflation each year. Seniors can confirm the latest figures directly with the IRS standard deduction guidelines.
Why It Matters in Arkansas
Even though this deduction is federal, it has a significant impact for Arkansans. Arkansas does not tax Social Security benefits, and it provides additional exemptions for retirement income, such as pensions and withdrawals from IRAs or 401(k)s (up to certain limits). When combined with the extra federal deduction, the overall tax burden for Arkansas seniors can be much lower than in other states.
For retirees living on fixed incomes, every dollar saved on taxes can go toward essentials like healthcare, housing, and daily living costs.
Read Also: Understanding the Missouri Extra Standard Deduction for Seniors Over 65
Other Arkansas Tax Benefits for Seniors
In addition to the federal extra deduction, Arkansas offers:
- Social Security tax exemption – Social Security retirement benefits are fully exempt from Arkansas state income tax.
- Retirement income exemption – Up to $6,000 of retirement income per taxpayer (from pensions, IRAs, and other qualified plans) is exempt.
- Property tax relief – Seniors who are 65 and older or disabled may qualify for a freeze on the assessed value of their primary residence, helping to keep property taxes manageable.
- No inheritance or estate tax – Arkansas does not impose these taxes, which further supports retirees and their families.
Key Takeaways for Seniors in Arkansas
- Seniors 65 and older qualify for an extra federal standard deduction.
- The deduction is $1,550 for single filers and $1,250 per spouse for married couples filing jointly in 2025.
- Arkansas already exempts Social Security benefits and provides retirement income deductions, making it a tax-friendly state for retirees.
- Seniors can also benefit from property tax freezes and other local relief programs.
Final Thoughts
For Arkansans over 65, the extra standard deduction is a simple yet powerful tool for lowering federal taxes. When paired with the state’s senior-friendly exemptions—such as no Social Security tax and retirement income relief—retirees can stretch their savings further and enjoy greater financial security.
Do you think Arkansas offers enough tax support for seniors, or should more be done to ease retirement living costs? Share your thoughts in the comments at ibwhsmag.com.
