Little Rock, AR – Seniors in Arkansas are set to benefit from tax relief measures in 2025, including the extra standard deduction for taxpayers over 65. This federal deduction, combined with state-level exemptions, helps retirees keep more of their income and reduces the overall tax burden.
What Is the Extra Standard Deduction?
The extra standard deduction is a federal tax benefit for seniors who are 65 years or older by the end of the tax year. It is added to the standard deduction that all taxpayers are entitled to, allowing older adults to further reduce their taxable income.
This deduction is especially helpful for retirees on fixed incomes, such as Social Security, pensions, or retirement account withdrawals, giving them extra funds for living expenses and healthcare.
Who is Eligible in Arkansas?
To claim this deduction, seniors must:
- Be 65 years or older by December 31 of the tax year.
- File taxes as single, head of household, or married filing jointly.
- Provide proof of age if requested, such as a driver’s license, birth certificate, or passport.
Married couples filing jointly can each claim the deduction if both spouses are 65 or older, doubling their tax savings.
Deduction Amounts for 2025
For the 2025 tax year, the extra standard deduction amounts are:
- Single or Head of Household seniors: $1,550
- Married Filing Jointly (per spouse 65+): $1,250
A senior filing alone could reduce taxable income by $1,550, while a married couple where both spouses are over 65 could reduce taxable income by $2,500. These amounts are added to the federal standard deduction, which is updated annually for inflation. Seniors should check the IRS standard deduction guidelines for current figures.
Importance for Seniors in Arkansas
Although a federal deduction, it has a big impact for Arkansans. The state does not tax Social Security benefits and offers exemptions for pensions, IRAs, and 401(k) withdrawals (within limits).
When combined with the federal extra deduction, retirees in Arkansas may face a lower overall tax burden compared with seniors in other states. Every dollar saved can help cover housing, healthcare, and daily living costs.
Additional Arkansas Tax Benefits for Seniors
In addition to the federal deduction, Arkansas provides:
- Social Security exemption: Retirement benefits are fully exempt from state income tax.
- Retirement income exemption: Up to $6,000 per taxpayer from pensions, IRAs, and qualified plans.
- Property tax relief: Seniors 65+ or disabled may qualify for a freeze on the assessed value of their primary residence.
- No inheritance or estate tax: Further supports retirees and their families.
Conclusion
For seniors in Arkansas, the extra standard deduction is a simple but powerful way to lower federal taxes. When combined with the state’s senior-friendly tax benefits, retirees can stretch their savings further and enjoy greater financial stability.
Are you an Arkansas senior planning your 2025 taxes? Share your experiences or ask questions in the comments below to help others maximize their retirement savings.
