Jackson, MS – As retirement costs climb and fixed incomes stretch thinner, Mississippi seniors over 65 can benefit from a little-known tax break that puts real money back in their pockets. This additional standard deduction could help retirees across Jackson, Hattiesburg, and beyond keep more of what they’ve earned.
Let’s break down what this deduction is, why it matters, and how to make sure it’s claimed properly.
Extra Standard Deduction for Seniors
Mississippi offers an extra standard deduction to residents who are 65 years or older by the end of the tax year. This deduction is in addition to the regular standard deduction and lowers a senior’s taxable income — which can directly reduce the amount of state income tax owed.
Seniors living on Social Security, pensions, or retirement accounts especially benefit, as this deduction provides more room in their budget for essentials like food, medicine, and housing.
Why This Matters
Even though Mississippi’s cost of living is lower than many states, rising prices and healthcare costs continue to put pressure on seniors:
- Medical bills and prescription costs keep rising.
- Utility and grocery expenses eat into fixed incomes.
- Inflation reduces purchasing power each year.
By claiming this extra deduction, seniors could save hundreds of dollars annually. That can be the difference between skipping bills or staying financially stable.
Who is Eligible?
To be eligible, seniors must:
- Be 65 or older by December 31 of the tax year.
- File as a Mississippi resident.
- Include accurate birthdate information on their state return.
It’s also worth noting that Mississippi does not tax Social Security income, and many retirement accounts like pensions and IRAs are also exempt. The extra deduction adds another layer of protection.
How to Get the Benefit
The process is straightforward:
- E-filers: Most tax software will automatically apply the deduction once the correct birthdate is entered.
- Paper filers: Be sure to clearly indicate age and review all instructions carefully.
- Need help? Seniors can reach out to tax professionals or local volunteer services, including the IRS VITA program, for support.
Mississippi and Other States
Mississippi stands out as a retiree-friendly tax state. In addition to the extra deduction and exemptions, the overall tax burden for seniors is relatively low as per Kiplinger.
In contrast:
- California and New York impose higher taxes on retirement income.
- Louisiana and Alabama offer similar senior benefits, but Mississippi’s combination of tax breaks makes it more appealing.
For retirees considering relocation, Mississippi may offer long-term tax advantages that help stretch savings further.
Raising Awareness Among Seniors
Unfortunately, many eligible residents never claim this deduction — often because they don’t know it exists.
Increasing awareness is key:
“Even small savings add up over time. For those on fixed incomes, missing out on this deduction could mean less money for food, transportation, or prescriptions.”
Community centers and nonprofits in Mississippi often hold free tax prep events to help seniors avoid these missed opportunities.
Conclusion
The extra standard deduction for Mississippi seniors over 65 is a powerful but underutilized benefit. When paired with other state tax breaks, it helps make Mississippi one of the most financially forgiving places to retire in the South.
If you or someone you know is 65 or older, make sure this deduction is on your radar this tax season — it’s a simple step that can lead to serious savings.
What are your thoughts on Mississippi’s senior tax benefits? Let us know in the comments.
