BOSTON, Mass. – For seniors in Massachusetts, living on a fixed income can be challenging with rising housing, healthcare, and everyday expenses. Thankfully, state and federal tax laws offer extra deductions and exemptions to help retirees reduce their taxable income and keep more of their hard-earned money.
What Is the Standard Deduction?
The standard deduction is a set dollar amount that taxpayers can subtract from their income, reducing the portion subject to tax. While most filers claim this instead of itemizing, seniors 65 and older can often qualify for additional deductions both federally and at the state level, increasing their overall tax savings.
Federal Extra Standard Deduction for Seniors
At the federal level, the 2024 standard deduction amounts are:
- $14,600 for single filers
- $29,200 for married couples filing jointly
Seniors 65 or older can claim an additional deduction:
- $1,950 for single filers or head of household
- $1,550 per spouse for married couples
For example, a married couple over 65 can raise their total deduction to $32,300, helping reduce federal taxable income significantly as per BPC.
Massachusetts’ Senior Exemption
Unlike the federal system, Massachusetts does not have a standard deduction. Instead, it provides personal exemptions and additional relief for seniors:
- $4,400 personal exemption for single filers
- $8,800 for married couples filing jointly
- Extra $700 per person for residents aged 65 or older
This means:
- A single filer over 65 can claim $5,100 total
- A married couple where both spouses are over 65 can claim $10,200 total
Who Qualifies for the Massachusetts Senior Exemption?
To claim the extra senior exemption in Massachusetts:
- You must be 65 or older by the end of the tax year
- You must be a resident of Massachusetts and file a state income tax return
- The exemption applies regardless of whether you itemize federally
Why This Matters for Seniors
Massachusetts seniors face higher living costs in cities like Boston, Cambridge, and the North Shore. The extra exemption can lower the state tax burden, leaving more money for essentials such as healthcare, groceries, and property taxes. When combined with federal benefits, these savings make retirement more manageable.
Filing Tips for Seniors
- Differentiate deductions and exemptions: Massachusetts provides exemptions, not a standard deduction like the IRS
- Claim both federal and state benefits: Take advantage of the federal extra standard deduction and the Massachusetts senior exemption
- Check eligibility for both spouses: If both are over 65, claim the exemption for each
- Explore additional credits: Programs like the Senior Circuit Breaker Tax Credit offer property tax relief
Conclusion
Seniors over 65 in Massachusetts can benefit from both federal extra deductions and state exemptions. While the state doesn’t follow the IRS standard deduction system, its senior exemptions provide meaningful tax relief. Combining these tax breaks allows retirees to preserve more of their income and improve their quality of life.
Are you a senior in Massachusetts taking advantage of these tax deductions and exemptions? Share your tips, experiences, or questions in the comments below to help others maximize their savings!
