Bismarck, ND – Seniors aged 65 and older in North Dakota can benefit from an extra standard deduction, a tax break aimed at lowering taxable income and easing financial strain in retirement. For retirees depending on fixed incomes such as pensions or Social Security, this deduction plays an important role in reducing annual tax obligations and stretching limited resources.
Understanding the Extra Deduction
The extra standard deduction is a tax reduction available to North Dakota residents who are either seniors or legally blind. It is applied on top of the regular standard deduction, further decreasing taxable income. This benefit is particularly valuable for older residents managing rising costs of healthcare, utilities, and everyday living.
Deduction Amounts for 2025
For the 2025 tax year, North Dakota allows an additional deduction of $1,950 for single seniors and $1,650 per spouse for joint filers. These figures are periodically adjusted for inflation. For instance, a single filer with $30,000 in taxable income could lower it to $28,050, potentially saving hundreds of dollars in taxes.
Who Qualifies for the Deduction
Eligibility is straightforward. Residents must be 65 or older by the end of the tax year, and the deduction applies regardless of income level. Additionally, those who are legally blind may also qualify for this extra deduction, even if they are under 65.
Claiming the Deduction
Applying the deduction is a simple process. Seniors must complete the North Dakota Form 40 state income tax return, enter the standard deduction first, and then add the senior deduction in the designated section. Ensuring accuracy with age, filing status, and other personal details can help avoid delays. Many retirees turn to tax professionals or software for guidance.
Advantages of the Deduction
This deduction provides several key benefits for older residents. It reduces the portion of income subject to state tax, increases refund potential for those who had taxes withheld, and is easy to claim with minimal paperwork. Most importantly, it delivers financial relief for seniors living on limited resources.
Example of Savings
Take a married couple, both over 65, with $50,000 in taxable income. They could reduce their income by $3,300 using the senior deduction ($1,650 each), lowering their taxable income to $46,700. This adjustment can translate into hundreds of dollars in tax savings, freeing up funds for healthcare, household bills, or leisure activities.
How North Dakota Compares to Other States
Not all states handle tax relief for seniors the same way. For example, Illinois and Missouri provide exemptions for retirees, while states like Florida and Texas don’t levy a state income tax at all, eliminating the need for such deductions. Seniors in North Dakota should review these provisions annually to ensure they claim every benefit available.
Smart Planning for Seniors
To make the most of this deduction, seniors should keep track of birth dates, confirm eligibility each tax year, and stay updated on annual adjustments. Combining the extra deduction with smart financial planning, such as carefully timing withdrawals from retirement accounts, can lead to significant long-term tax savings.
Are you or someone you know planning to claim North Dakota’s extra senior tax deduction this year? Share your thoughts, experiences, or questions in the comments below – we’d love to hear from you.
