The standard deduction and the extra amount at 65

How it works

The standard deduction depends on filing status, this year's official standard deduction single (not yet verified here; see the official source below) for a single filer, this year's official standard deduction married (not yet verified here; see the official source below) for a joint return, and this year's official standard deduction head of household (not yet verified here; see the official source below) for head of household, and it is indexed each year. A filer who is 65 or older on the last day of the year, or who is blind, adds this year's official standard deduction extra 65 (not yet verified here; see the official source below) to the figure, and a married couple where both are 65 adds it twice. A person claimed as a dependent on someone else's return has a smaller standard deduction tied to their earned income. The filer takes the larger of the standard deduction or itemized deductions, so the standard deduction is the hurdle every itemized total must clear. Married people filing separately must both itemize if one does. Congress has at times added a temporary extra deduction for older filers, which the IRS page lists when it applies.

What it gives

It requires no records and no forms, and it is subtracted automatically.

The extra amount at 65 arrives with no action beyond reporting the birth date.

A couple both over 65 gets two extra amounts on a joint return.

What it costs, or where the catch is

A filer who can be claimed as a dependent gets a reduced standard deduction.

A married person filing separately must itemize when the spouse itemizes, even if the standard deduction would have been larger.

Choosing the standard deduction means every itemized item, including charitable gifts, earns nothing that year.

A worked example

Willa turned 65 in March and her husband Arlo is 68, and they file jointly with $70,000 of income. If the married standard deduction were $29,000 and the extra amount $1,550 each, their deduction is $29,000 plus $1,550 plus $1,550, which is $32,100. Their taxable income is $70,000 minus $32,100, which is $37,900. Their itemized total of $24,000 falls short, so the standard deduction is used.

Where it goes wrong

The common miss is forgetting the extra amount at 65 on a self prepared return, which happens when the birth date is entered wrong or the box is left unchecked.

Who confirms it for you

Nobody has to; it is arithmetic you can check yourself with the numbers above.

The official source

IRS Tax Topic 551, Standard deduction. Every figure that changes by year comes from the site's rules table, which the watcher checks against the official page on a schedule; where a figure is not yet verified, this page says so instead of printing a number.