Austin, TX – Seniors aged 65 and older in Texas can enjoy a significant tax break during the 2024 tax season with the extra standard deduction, a benefit that reduces taxable income, helping seniors keep more of their hard-earned money.
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 established this benefit to provide relief for seniors, who often live on fixed or limited incomes, ensuring they retain more of their financial resources.
For the 2024 tax year, the regular standard deduction is:
- $14,600 for single filers
- $29,200 for married couples filing jointly
Seniors 65 or older are eligible for an additional $1,950 if filing as single, or $1,550 per person if married and filing jointly. A married couple over 65 could claim an extra $3,100 in addition to their regular standard deduction, potentially lowering their taxable income by more than $32,000 in total.
Who Qualifies in Texas?
The qualification rules for the extra standard deduction are federal, so they apply to all U.S. states, including Texas. As per KXAN, to qualify, you must meet the following criteria:
- 65 or older by the end of the tax year (born before January 2, 1960, for 2024 filing)
- Not itemizing deductions
- Filing as single, head of household, qualifying surviving spouse, or married (filing jointly or separately)
If you are legally blind, you may also qualify for an additional increase in your standard deduction, beyond the senior benefit.
Why This Matters for Texans
Since Texas has no state income tax, residents only file federal income tax returns. This means the savings from the extra standard deduction directly reduce your IRS bill, potentially saving hundreds or even thousands of dollars.
For example, a retired couple in Texas with $50,000 in taxable income could see their taxable income reduced to approximately $17,000 after combining the regular and extra standard deductions. This could lower their federal tax liability significantly.
These savings are especially important for seniors managing expenses such as healthcare, housing, and rising inflation-related costs.
Other Tax Benefits for Texas Seniors
In addition to the extra standard deduction, seniors in Texas enjoy several other tax perks:
- Property Tax Relief: Seniors over 65 qualify for an additional $10,000 homestead exemption from school district property taxes, reducing their overall property tax bills.
- Property Tax Freeze: Some counties, cities, and school districts in Texas allow seniors to freeze their property taxes, ensuring no increase in taxes owed on their primary residence.
- No State Tax on Social Security: Texas does not tax Social Security benefits, which can significantly stretch retirement income.
Together, these benefits can improve seniors’ financial outlook, especially when combined with the extra standard deduction.
How to Claim the Deduction
Claiming the extra standard deduction is simple if you file taxes using Form 1040:
- Electronically: Most tax software will prompt you to confirm your age, automatically applying the deduction.
- Paper Filing: Check the appropriate box on the standard deduction line to indicate that you are 65 or older. No additional forms are required.
The IRS Publication 554 – Tax Guide for Seniors offers further details on the extra standard deduction and other credits seniors might qualify for, such as the Credit for the Elderly or the Disabled.
Common Mistakes to Avoid
Although the extra standard deduction is straightforward, seniors should avoid these mistakes:
- Incorrect age reporting: Ensure your birthdate is entered correctly to avoid losing the deduction.
- Itemizing deductions: If you itemize, you cannot claim the extra standard deduction.
- Confusing with other credits: The extra standard deduction is separate from other senior tax credits.
Conclusion
The extra standard deduction is an easy way for seniors in Texas to lower their taxable income and reduce their federal tax bill. Combined with other state benefits, this deduction provides substantial financial relief, making it a powerful tool for protecting retirement income.
What are your thoughts on the extra standard deduction and other tax benefits available for seniors in Texas? Share your thoughts with us in the comment section.
