Portland, Maine – Seniors in Maine can reduce their taxable income thanks to an extra standard deduction available at both the federal and state level for residents aged 65 and older. This deduction helps retirees keep more of their income for living expenses and retirement needs.
What Is the Extra Standard Deduction?
The standard deduction lowers the portion of income subject to tax. Seniors qualify for an additional deduction, often called the “extra standard deduction,” automatically at the federal level once they turn 65. Maine generally follows federal rules while offering additional state-specific benefits.
Federal Deduction for Seniors
For the 2024 tax year, the IRS standard deductions are:
- $14,600 for single filers
- $29,200 for married couples filing jointly
Seniors receive an extra $1,950 if filing single or head of household, or $1,550 per spouse for joint filers. For couples where both spouses are over 65, this adds up to an extra $3,100 in deductions.
Maine’s Additional Benefits
Maine adopts the federal standard deduction, including the extra senior deduction, and also offers a Pension Income Deduction. Eligible retirees can deduct up to $30,000 of pension and retirement income, with adjustments for Social Security benefits.
Why It Matters
With rising living costs in Maine cities such as Portland, Bangor, and Augusta, seniors on fixed incomes face financial pressure. The extra deduction allows retirees to:
- Lower federal and state taxes
- Stretch Social Security and pension income
- Avoid dipping into savings too quickly
For instance, a single senior in Portland earning $35,000 could lower taxable income significantly using the standard deduction plus the extra senior deduction, saving hundreds on taxes.
Eligibility
To claim the extra deduction in Maine:
- Be 65 or older by year-end
- File using the standard deduction method (though itemizing is an option)
- Provide proof of age
- Married couples can claim the deduction for the qualifying spouse even if the other is younger
Conclusion
Maine seniors can maximize their retirement income by taking advantage of the extra standard deduction and other retirement-related tax benefits. These measures help ensure more money stays in their pockets for essentials like healthcare, housing, and daily living.
We Want to Hear From You: How do you manage taxes and retirement income in Maine? Share your tips and experiences in the comments.
