by JACKSON, Mississippi — With rising living costs and healthcare expenses continuing to strain retirement budgets, Mississippi offers a valuable tax benefit that can help seniors keep more money in their pockets. Known as the extra standard deduction for seniors over 65, this tax break provides additional relief on top of the regular standard deduction, ensuring that retirees have more disposable income to cover essential needs.
For many seniors across Jackson, Gulfport, Hattiesburg, and other parts of the state, understanding and claiming this deduction could mean hundreds of dollars in tax savings each year.
What Is the Extra Standard Deduction for Seniors?
The extra standard deduction is a special tax provision designed for Mississippi residents who are 65 years or older by the end of the tax year. This deduction reduces taxable income, which can directly lower the amount of state income tax owed.
The Mississippi Department of Revenue explains that this deduction works in addition to the regular standard deduction that all taxpayers may claim. When combined, it can significantly reduce the tax burden for older residents. Seniors who depend on fixed incomes such as Social Security, pensions, or retirement savings often find this deduction especially beneficial.
Why This Deduction Matters in Mississippi
Mississippi has a relatively affordable cost of living compared to other states, but retirees still face challenges such as:
- Rising healthcare expenses, including doctor visits, prescription medications, and insurance premiums.
- Inflation, which increases the cost of groceries, gas, and everyday necessities.
- Housing and utility costs, which can strain limited retirement budgets.
By lowering taxable income, the extra standard deduction gives seniors a financial cushion. Even a few hundred dollars in savings each year can make a meaningful difference in managing monthly expenses. According to the Mississippi Department of Revenue, many older taxpayers may qualify for this deduction but don’t always claim it.
Eligibility: Who Can Claim the Deduction?
To qualify for the Mississippi extra standard deduction, you must:
- Be 65 years or older at the end of the tax year.
- File a Mississippi resident income tax return.
- Provide accurate birthdate information when filing.
Seniors should also note that Social Security income is exempt from Mississippi state taxes, which already makes the state one of the more tax-friendly places to retire. The extra standard deduction builds on this exemption, giving retirees even more breathing room.
How Seniors Can Claim the Deduction
The process to claim the extra standard deduction is relatively simple:
- When filing electronically: Most tax software will automatically apply the deduction once you enter your date of birth.
- When filing paper forms: Seniors must indicate their age clearly and review instructions carefully to ensure the deduction is applied.
- Seek professional help if needed: Tax professionals or community volunteer programs can help seniors avoid errors and make sure they don’t miss out on this benefit.
The Mississippi Department of Revenue’s tax filing portal also offers resources and FAQs for seniors filing their returns.
Comparing Mississippi to Other States
Mississippi stands out as a tax-friendly state for retirees. In addition to the extra standard deduction, the state exempts Social Security benefits and certain retirement income such as pensions and IRAs from state income tax.
By contrast, states like California and New York have higher overall tax burdens and limited deductions for retirees. Neighboring states, such as Louisiana and Alabama, also offer senior-friendly tax policies, but Mississippi’s combined exemptions and deductions make it particularly appealing.
This means that retirees who choose to stay in or move to Mississippi may find it easier to stretch their retirement savings compared to those living in less tax-friendly states.
Read Also: Understanding the Minnesota Extra Standard Deduction for Seniors Over 65
Why Awareness of the Deduction Is Important
Despite the availability of this deduction, many seniors fail to claim it simply because they are unaware of it. Tax experts suggest that retirees review their filings every year to ensure they’re taking advantage of all available state and federal tax benefits.
Awareness is critical because:
- Small annual savings add up over time, creating long-term financial security.
- Seniors on fixed incomes may struggle without knowing about these deductions.
- Filing correctly helps avoid unnecessary overpayments to the state.
Community organizations and senior centers in Mississippi often hold tax-preparation workshops in partnership with the IRS Volunteer Income Tax Assistance (VITA) program, which can help seniors claim their rightful deductions.
Final Thoughts
The Mississippi extra standard deduction for seniors over 65 is a valuable tax break that can ease financial pressure for older residents. Combined with the state’s exemption of Social Security benefits and retirement income, it makes Mississippi one of the most retirement-friendly states in the South.
For seniors living on a fixed income, every dollar saved can mean better healthcare access, more affordable groceries, and greater financial peace of mind.
Do you believe Mississippi should expand tax breaks for seniors to cover additional living expenses? Share your perspective in the comments at ibwhsmag.com.
