Concord, NH – For many older residents, retirement comes with the need to carefully manage income and expenses. Taxes can be a major factor in financial planning, and New Hampshire has introduced an extra standard deduction that specifically benefits seniors aged 65 and above. Understanding this deduction can help retirees lower their taxable income and keep more money in their pockets.
What Is the Standard Deduction?
The standard deduction is a fixed amount that taxpayers can subtract from their income before taxes are calculated. It reduces the amount of income that is subject to taxation, making it one of the most valuable tools for lowering tax liability. Instead of itemizing deductions, most taxpayers claim the standard deduction because it is simpler and often more beneficial.
The Extra Deduction for Seniors Over 65
New Hampshire provides an additional standard deduction for seniors once they turn 65. This means eligible taxpayers can claim more than the regular deduction amount, further lowering their taxable income. This extra deduction is designed to ease the financial burden on seniors, many of whom rely on fixed incomes from retirement savings, pensions, or Social Security as per Kiplinger.
- Eligibility: Available to taxpayers who are 65 or older by the end of the tax year.
- Filing Status Impact: Both spouses can qualify if they are 65 or older and filing jointly.
- Purpose: Helps seniors reduce taxable income and keep more of their retirement funds.
Why It Matters
The cost of living continues to rise, and seniors often face additional expenses such as healthcare, housing, and daily necessities. By offering an increased deduction, New Hampshire provides meaningful tax relief that can improve financial stability. While it may not eliminate tax obligations entirely, the savings can make a noticeable difference year after year.
How to Claim the Deduction
Claiming the extra deduction is simple and is done when filing state tax returns. Seniors should ensure they select the correct age-related box on their tax forms. Those filing jointly should confirm eligibility for both partners to maximize the deduction.
Conclusion
The extra standard deduction for seniors over 65 in New Hampshire is an important benefit that supports financial security in retirement. By reducing taxable income, it allows older residents to keep more of their hard-earned money and focus on enjoying their retirement years. Seniors and their families should make sure they understand and take advantage of this deduction when filing taxes.
Are you or someone you know planning to claim New Hampshire’s extra standard deduction for seniors this year? Share your thoughts and experiences in the comments below.
