by Minneapolis, Minnesota — If you’re 65 or older and filing taxes in Minnesota, understanding the extra standard deduction and additional tax benefits available to you in 2025 can mean significant savings. Minnesota offers generous deductions above the federal baseline to support seniors, aiming to ease the financial burden of retirement. Here’s how it works and how you can leverage it to your advantage.
Higher Base Standard Deduction in Minnesota
Minnesota allows taxpayers to claim its own standard deduction, even if they’ve itemized on the federal return. For 2025, the standard deduction amounts are:
- $14,950 for Single or Married Filing Separately
- $22,500 for Head of Household
- $29,900 for Married Filing Jointly or Qualifying Surviving Spouse
According to the Minnesota Department of Revenue, these base amounts are already higher than the federal standard deduction, offering residents a financial advantage.
Extra Deduction for Seniors (65+)
Minnesota also provides additional deductions for seniors and the visually impaired. For 2025, the added amounts are:
- $2,000 for single filers who are 65 or older (or blind)
- $2,000 extra if the head of household is 65 or older (or blind)
- $1,550 per spouse if filing jointly and each is 65 or older or blind
These boosts are layered on top of the base deduction, further lowering taxable income for retirees. Full details are outlined in the state’s deduction guide.
Social Security and Pension Subtractions
Minnesota also supports seniors through income subtractions beyond the standard deduction. For example, some Social Security benefits may be exempt from state tax for those with adjusted gross income below certain thresholds, such as $82,190 for single filers and $105,380 for joint filers in 2025, as highlighted by the Minnesota House Research Department.
Seniors may also qualify for a pension income subtraction depending on income type. The Department of Revenue’s senior citizen guidance provides details on eligibility and filing requirements.
Federal Senior Deductions Still Apply
Minnesota seniors should remember that federal tax benefits stack with state deductions. The federal extra standard deduction for 2025 is $2,000 for single filers and $3,200 for couples filing jointly if both are over 65 (or blind), according to Kiplinger.
Additionally, the One Big Beautiful Bill Act (OBBBA) introduces a $6,000 bonus deduction for seniors (or $12,000 for couples) for tax years 2025–2028, though it begins phasing out once income exceeds $75,000 for single filers and $150,000 for couples, as noted by the IRS.
Read Also: Understanding the Louisiana Extra Standard Deduction for Seniors Over 65
How These Benefits Add Up
Consider a married couple, both over 65:
- Federal standard deduction: ~$31,500
- Federal extra senior deduction: +$3,200
- Federal OBBBA bonus: +$12,000
- Minnesota standard deduction: ~$29,900
- Minnesota extra senior deduction: +$3,100 total
Altogether, this could mean nearly $80,000 removed from taxable income—a significant financial relief for retirees.
Filing Tips for Minnesota Seniors
To make the most of these benefits:
- Claim Minnesota’s standard deduction and senior add-on using Form M1.
- Check eligibility for the “Age 65 or Older Subtraction” using Schedule M1R.
- Confirm whether your Social Security or pension income qualifies for state subtractions.
- Combine state and federal senior deductions strategically.
- Consult a tax professional to ensure you don’t miss out on new credits like OBBBA.
Final Thoughts
Minnesota seniors have strong tax benefits in 2025: elevated standard deductions, age-based boosts, and possible Social Security or pension subtractions. Combined with federal perks such as the OBBBA bonus deduction, this year could offer exceptional opportunities for savings.
Are you a Minnesota senior planning to use these deductions? Share your thoughts and experiences at ibwhsmag.com.
