Extra deduction for those over 65 that will change in 2025

As it does every year, the IRS announced inflation adjustments to some key credit and deduction amounts that will take effect in 2025. This includes (but is not limited to) new 2025 income tax brackets and standard deduction and income tax increases. Additional standard deduction for people age 65 and over.

As Kiplinger reported, the extra standard deduction claimed in addition to the regular standard deduction could help reduce taxable income and the overall tax burden in retirement for millions of older adults.

Here’s more information you need to know to plan for your early 2026 returns.

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Over 65 additional standard deductions for 2025

The additional standard deduction for single filers and heads of household age 65 and older will increase slightly – from $1,950 in 2024 (you’ll file returns soon in early 2025) to $2,000 in 2025 (you’ll file returns in early 2026). .

For 2025, married couples over the age of 65 will also see a modest benefit if they apply jointly.

The extra deduction per qualifying spouse will increase from $1,550 in 2024 to $1,600 in 2025; this will increase by $50 per qualifying spouse.
For couples where both partners are 65 or older, this means a total increase of $100 in additional standard deductions.

Those aged 65 and over and those who are blind will continue to receive double the additional amount. In 2025, this will mean an extra $4,000 for single filers or heads of household. (Double $2,000 for those 65 and older or blind.)

Meanwhile, for married couples filing jointly, this amount will be $3,200 per qualifying spouse (i.e., $1,600 x 2).

Regular standard deduction increases for 2025

IRS regulations regarding the extra standard deduction for older adults come with increases in income. standard deduction for all taxpayers.

The Tax Policy Center and other groups estimate that about 90% of people take the standard deduction rather than itemizing.) This is especially true given the huge increase in the base deduction under the law. Tax Cuts and Jobs Act (TCJA).

For Standard deduction will increase in 2025 $400 to $15,000 for singles, $800 to $30,000 for married couples filing jointly, and $600 to $22,500 for heads of household.
These increases could help offset the reduction in the additional standard deduction for some taxpayers over age 65.

For example, when combined with the regular standard deduction, total standard deductions for older adults in 2025 would be:

$17,000 for single applicants or heads of household aged 65 and over
$33,200 for married couples filing jointly if both spouses are 65 or older

Impact of 2025 deduction changes

These changes are often a problem for those deciding between taking the standard deduction and itemizing.

Although the changes may seem small, they can affect your financial situation and federal income tax bracketSome taxpayers over age 65 may qualify for a modest tax break.

It’s also worth noting that the IRS explained. Inflation-adjusted federal income tax brackets for 2025.

Income thresholds will increase by approximately 2.8% from 2024 levels.
This increase is lower than in previous years and probably reflects the recent slowdown in inflation.

But unless the U.S. Congress acts, many key federal tax provisions in the TCJA, including the higher basic standard deduction and lower tax rates, will expire at the end of 2025.

So, as always, stay informed about these and other potential changes.

Also consider consulting a professional tax expert To understand how the new deduction amounts may (or may not) affect your overall tax situation for tax year 2025 and beyond.

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