by Austin, TX – For Texans aged 65 and older, tax season can bring a welcome benefit: the extra standard deduction. This tax break is designed to reduce taxable income for seniors, allowing them to keep more of their hard-earned money. Understanding how it works — and whether you qualify — can make a significant difference in your annual tax bill.
What Is the Extra Standard Deduction?
The extra standard deduction is an additional amount you can subtract from your taxable income on top of the regular standard deduction. The IRS created this benefit to help seniors, who often live on fixed or limited incomes, retain more of their resources.
For the 2024 tax year, the regular standard deduction is:
- $14,600 for single filers
- $29,200 for married couples filing jointly
If you’re 65 or older, you qualify for an additional $1,950 if filing as single, or $1,550 per person if married and filing jointly. That means a married couple over 65 could claim an extra $3,100 deduction in addition to their regular standard deduction — potentially reducing their taxable income by more than $32,000 in total.
“Many seniors overlook this deduction simply because they don’t realize it’s automatic,” notes the IRS in Publication 501. “If you meet the age requirement, you don’t have to do anything extra to claim it.”
Who Qualifies in Texas?
The qualification rules for the extra standard deduction are federal, so they apply to all U.S. states, including Texas. You qualify if:
- You are 65 or older at the end of the tax year (born before Jan. 2, 1960, for 2024 filing).
- You do not itemize deductions.
- You file as single, head of household, qualifying surviving spouse, or married (filing jointly or separately).
Additionally, if you are legally blind, you may be entitled to another increase in your standard deduction, even beyond the senior benefit.
Why This Matters for Texans
Because Texas has no state income tax, residents only file federal income tax returns. This means all your savings from the extra standard deduction apply directly to your IRS bill.
For example:
A retired couple in Texas filing jointly with $50,000 in taxable income could see that figure reduced to around $17,000 after combining the regular and extra standard deductions. This could lower their federal tax liability by hundreds or even thousands of dollars depending on their overall income situation.
These savings can be crucial for retirees managing expenses like health care, housing, and inflation-related cost increases.
Other Tax Benefits for Texas Seniors
Beyond the extra standard deduction, Texas offers additional perks to seniors:
- Property Tax Relief: Seniors over 65 qualify for an additional $10,000 homestead exemption from school district property taxes, which can significantly reduce annual tax bills.
- Property Tax Freeze: Some Texas counties, cities, and school districts allow eligible seniors to freeze the amount of property taxes owed on their primary residence.
- No State Tax on Social Security Benefits: Texas does not tax Social Security income, which can further stretch retirement income.
When combined with the extra standard deduction, these benefits can meaningfully improve a senior’s financial outlook.
How to Claim the Deduction
If you file taxes using Form 1040, the extra deduction is calculated automatically as long as your date of birth is entered correctly. If you file electronically, most tax software will prompt you to confirm your age to ensure the deduction is applied.
If you file on paper, you simply need to check the appropriate box on the standard deduction line to indicate you are 65 or older. No additional forms are required.
The IRS Publication 554 – Tax Guide for Seniors offers a detailed breakdown of the extra standard deduction and other credits you might qualify for, such as the Credit for the Elderly or the Disabled.
Common Mistakes to Avoid
While claiming the extra standard deduction is straightforward, there are a few mistakes to avoid:
- Failing to Report Your Age Correctly – If your birthdate is missing or incorrect, the deduction won’t be applied.
- Assuming You Can’t Take It if You Itemize – This deduction only applies if you take the standard deduction; if you itemize, you forfeit it.
- Confusing It with Other Credits – This is separate from senior tax credits, so you may be eligible for both.
“Too often, retirees focus on income and overlook deductions that can help them keep more of it,” tax experts emphasize in IRS guidance. “The extra standard deduction is one of the simplest yet most valuable ways for seniors to reduce taxes.”
The Bottom Line for Texas Seniors
The extra standard deduction is an automatic, hassle-free way for Texans 65 and older to lower their taxable income and potentially reduce their federal tax bill significantly. Combined with other senior-specific benefits available in the Lone Star State, it’s a powerful tool for protecting retirement income.
Have you used the extra standard deduction when filing taxes in Texas? Share your experiences and tips in the comments below. For more senior tax guides and financial advice, visit ibwhsmag.com.
