by HELENA, MT — Seniors in Montana often face unique financial challenges, especially those living on fixed incomes. To ease this burden, both the federal government and the state of Montana offer tax benefits to older residents. Among these is the extra standard deduction for individuals aged 65 and older, which can help reduce taxable income and provide meaningful savings.
This guide breaks down what Montana seniors need to know about the extra deduction, how it works, and how it compares to federal benefits.
What Is the Extra Standard Deduction for Seniors?
The standard deduction is a fixed amount taxpayers can subtract from their income before calculating taxes. For seniors aged 65 or older, the IRS allows an additional deduction on top of the standard amount.
For the 2024 tax year (filed in 2025):
- Seniors filing as single or head of household can claim an extra $1,950.
- Seniors filing as married filing jointly, where one spouse is over 65, receive an extra $1,550. If both spouses are over 65, the deduction doubles.
This deduction is designed to acknowledge the higher medical expenses and limited earning opportunities many seniors face.
Does Montana Offer a State-Specific Deduction?
Unlike some states, Montana does not have its own additional standard deduction for seniors. Instead, residents rely on the federal deduction when filing state returns. However, Montana tax laws do include other benefits for older adults, particularly around Social Security income.
Montana taxes Social Security benefits depending on income levels, but some seniors may qualify for partial or full exemptions. More details can be found on the Montana Department of Revenue website.
Eligibility for the Extra Deduction
To qualify for the extra standard deduction in Montana, seniors must:
- Be 65 years old or older by the end of the tax year.
- File a return using a filing status that allows the deduction (single, married, or head of household).
- Not itemize deductions beyond what’s allowed under federal rules.
For those who are blind or visually impaired, an additional deduction may also apply.
Example: How It Works in Practice
Consider a single taxpayer in Montana who is 67 years old:
- Standard deduction: $14,600 (for single filers in 2024)
- Extra senior deduction: $1,950
- Total deduction: $16,550
This reduces taxable income by nearly $2,000, lowering the overall tax burden.
Read Also: Understanding the Mississippi Extra Standard Deduction for Seniors Over 65
Why This Matters for Montana Seniors
For seniors living on pensions, Social Security, or retirement savings, every dollar counts. The extra deduction can:
- Lower state and federal tax liability.
- Help seniors manage rising healthcare and housing costs.
- Reduce the need to dip into savings for essential expenses.
Comparing Montana With Other States
Tax treatment for seniors varies nationwide:
- States like Florida and Texas impose no state income tax at all.
- Montana, while taxing Social Security in some cases, provides relief through federal deductions and certain retirement-related exemptions.
- States such as Delaware and Hawaii offer additional deductions at the state level, giving seniors extra tax relief beyond federal benefits.
Summary Table: Extra Standard Deduction 2024 (Filed in 2025)
| Filing Status | Age 65+ Deduction | Additional for Seniors |
|---|---|---|
| Single / Head of Household | $14,600 | + $1,950 |
| Married Filing Jointly (One 65+) | $29,200 | + $1,550 |
| Married Filing Jointly (Both 65+) | $29,200 | + $3,100 |
Key Takeaways
- Montana does not offer a separate state-level senior deduction — seniors rely on federal tax breaks.
- Seniors aged 65 and older can claim an extra deduction, ranging from $1,550 to $1,950, depending on filing status.
- Social Security benefits may still be taxable in Montana, but exemptions exist for lower-income residents.
- The deduction helps seniors reduce taxable income, providing significant relief during retirement.
Are you a Montana senior navigating retirement taxes? Share your thoughts and experiences in the comments on ibwhsmag.com.
