PROVIDENCE, R.I. – Seniors living in Rhode Island may benefit from enhanced tax savings in 2025 thanks to the state’s Extra Standard Deduction provision, along with additional retirement income exemptions. These deductions aim to reduce the financial burden on older residents living on fixed incomes.
Extra Standard Deduction for Seniors
The standard deduction allows taxpayers to subtract a fixed amount from their income, simplifying the filing process. In Rhode Island, those aged 65 and older are eligible for an additional deduction, which further lowers taxable income.
For tax year 2025, base standard deduction amounts are:
- Single: $10,900
- Married Filing Jointly: $21,800
- Head of Household: $16,350
- Married Filing Separately: $10,900
Seniors receive an additional bonus on top of the base:
- $1,300 for single or head-of-household filers aged 65+
- $1,050 for married couples if one or both spouses are 65+
These figures are updated annually to account for inflation.
Real-Life Example of the Deduction’s Impact
A single senior would combine their $10,900 base deduction with the $1,300 senior bonus, totaling $12,200. A married couple where one spouse is over 65 would be eligible for a $22,850 deduction. If both spouses qualify, the combined deduction grows further.
This offers substantial tax relief for seniors who do not itemize deductions, especially those living on modest pensions or retirement distributions.
Additional Retirement Income Exemptions
Rhode Island’s tax code also includes exemptions for pension and annuity income. Seniors who’ve reached full retirement age can exclude up to:
- $20,000 per person of eligible income
- $40,000 for married couples, if both qualify
These exclusions apply in addition to the standard deduction and are subject to income eligibility thresholds defined by the Rhode Island Division of Taxation.
Why These Tax Breaks Matter
For many retirees, every dollar saved counts. Rising healthcare costs, utility bills, and food prices can strain fixed budgets. These deductions may:
- Lower or eliminate state tax liability
- Simplify filing for seniors who don’t itemize
- Preserve retirement savings for essential needs
Important Distinctions from Federal Tax Rules
While the IRS also offers senior deductions, Rhode Island’s tax breaks operate separately. For 2025:
- Federal extra deduction is $1,950 for single filers
- Federal extra deduction is $1,550 for married seniors
Seniors should remember to calculate state and federal taxes independently and not assume the rules are identical.
Tips for Seniors Filing in 2025
- Confirm eligibility for both senior and retirement deductions
- Compare itemizing vs. standard deduction for maximum benefit
- Use both federal and state-level deductions where allowed
- Consult a tax professional to ensure full compliance and optimization
Are you or someone you know planning to claim these deductions in 2025? Drop your thoughts or questions in the comments. Let’s help Rhode Island seniors take full advantage of what they’re owed.
