by Lincoln, Nebraska – Nebraska seniors over the age of 65 may be eligible for an extra standard deduction on their state income taxes, reducing their taxable income and potentially lowering their tax bill. Understanding how this deduction works is essential for seniors and their families as they plan finances and file taxes in 2025.
What Is the Extra Standard Deduction?
The extra standard deduction is an additional deduction available to taxpayers who meet certain age or blindness criteria. In Nebraska, taxpayers who are age 65 or older can claim this deduction in addition to the standard deduction, providing further relief for seniors on fixed incomes.
Unlike itemized deductions, which require documentation of expenses like medical costs or charitable contributions, the extra standard deduction is automatic once age and filing status criteria are met. Seniors simply claim it on their Nebraska state income tax return.
Eligibility Requirements
To qualify for the Nebraska extra standard deduction, taxpayers must:
- Be age 65 or older by the end of the tax year.
- File a Nebraska state income tax return as an individual, married filing jointly, or qualifying widow(er).
- Be a resident of Nebraska for at least part of the tax year.
It’s important to note that blindness also qualifies a taxpayer for an extra standard deduction, but this guide focuses specifically on the age-based deduction for seniors.
How Much Is the Extra Deduction?
The amount of the extra standard deduction depends on the taxpayer’s filing status. For the 2025 tax year, the amounts are as follows:
| Filing Status | Extra Standard Deduction for Seniors 65+ |
|---|---|
| Single or Married Filing Separately | $4,350 |
| Married Filing Jointly | $6,500 |
| Head of Household | $4,350 |
| Qualifying Widow(er) | $6,500 |
These amounts are added to the regular standard deduction, effectively lowering taxable income and possibly placing the taxpayer in a lower tax bracket.
Read Also: Understanding the North Carolina Extra Standard Deduction for Seniors Over 65
How to Claim the Deduction
Claiming the extra standard deduction is straightforward:
- Check age eligibility: Ensure you were 65 or older at the end of the tax year.
- Complete your Nebraska state tax return: Use Form 1040N or the appropriate Nebraska individual income tax form.
- Enter the extra deduction: There is a specific line on the state return for the extra standard deduction. The form will guide you in adding the appropriate amount based on your filing status.
- File your return: Seniors can file electronically or by mail. If using tax software, the system typically calculates the deduction automatically once age and filing status are entered.
Benefits of the Extra Standard Deduction
Claiming the extra deduction can have multiple benefits for seniors:
- Reduced Taxable Income: The extra deduction directly lowers the amount of income subject to Nebraska state taxes.
- Lower Tax Liability: Less taxable income often translates to a smaller state tax bill.
- Simplified Filing: Seniors who don’t have enough itemized deductions to exceed the standard deduction can still maximize tax savings.
Planning Tips for Seniors
- Review Other Deductions: Combine the extra standard deduction with other available tax benefits for seniors, such as federal deductions or property tax relief programs, for maximum savings.
- File Early: Filing early can help seniors plan for expected refunds or liabilities.
- Consider Software or Professional Help: Tax software often automatically calculates extra deductions, but professional assistance can ensure seniors don’t miss out on any benefits.
- Keep Updated: Tax laws and deduction amounts can change annually. Seniors should review the Nebraska Department of Revenue’s website or consult a tax professional each year.
Key Takeaways
- Seniors 65 and older in Nebraska can claim an extra standard deduction on their state income taxes.
- The deduction amount varies by filing status, ranging from $4,350 to $6,500 in 2025.
- The deduction is automatic for eligible seniors, simplifying the filing process.
- Combining the extra standard deduction with other tax benefits can maximize savings and reduce financial stress in retirement.
For more information about the Nebraska extra standard deduction for seniors, visit the Nebraska Department of Revenue or consult a licensed tax professional.
Have you claimed Nebraska’s extra standard deduction before, or do you have questions about eligibility? Share your experiences or ask your questions in the comments below at ibwhsmag.com.
