If you are over the age of 65 you may qualify for more tax credits.
For instance, many Americans can have a higher income threshold before being legally required to file taxes. And you qualify for a larger standard deduction.
Here are three ways that being older comes with tax benefits that benefit only you.
Higher income threshold for filing taxes
If you are single and make more than $12,550 annually, then you must file a federal tax return. But that threshold increases if you are 65.
Are you 65 and a single filer? Then you must make at least $14,250 annually to file a tax return.
A married couple under the age of 65 must make less than $25,100 to avoid filing a tax return. A married couple over the age of 65 can make $27,800. If only one spouse is 65 or older, then they can make up to $26,450 annually.
Even if you don’t meet the IRS income threshold to file federal taxes, you may still want to file a return. You may still qualify for a variety of tax credits and benefits. And you could get a refund based on withheld local and state taxes.
Larger standard deductions
More than 90% of Americans qualify in some way for the standard deduction. If you are over the age of 65, however, you qualify for several larger standard deduction amounts.
If you are 65 or older, and don’t itemize any tax deductions, you can claim as much an extra $1,700 above the standard deduction.
If a married couple is both senior citizens, then they can claim $2,800 on top of the standard or $1,400 more if one spouse is 65.
Tax credits for the elderly and disabled
Senior citizens can claim tax credits ranging between $3,750 to $7,500 depending on their circumstances. That’s right — you can claim this credit by just being 65 or older.
And you can reduce your overall tax obligations by qualifying for these tax credits.
You must be 65 and older and make less than $17,500 to qualify for this credit. A married couple age 65 or older needs to make at least $25,000.
If you are permanently disabled you may also qualify for this credit no matter your age.
