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A married couple of two 65+ adults would take a total deduction of $27,700 (standard deduction) plus $1,500 for one 65+ adult plus $1,500 for second 65+ adult — a total of $30,700.
The standard deduction for those over age 65 in 2023 (filing tax year 2022) is $14,700 for singles, $27,300 for married filing jointly if only one partner is over 65 (or $28,700 if both are), and ...
Here are the standard deductions for the 2022 and 2023 tax years: Single: $12,950 for 2022, $13,850 for 2023. Married, filing jointly: $25,900 for 2022, $27,700 for 2023.
For dependents, the standard deduction is equal to earned income (that is, compensation for services, such as wages, salaries, or tips) plus a certain amount ($400 in 2023). A dependent's standard deduction cannot be more than the basic standard deduction for non-dependents, or less than a certain minimum ($1,250 in 2023).
Section 151 of the Internal Revenue Code was enacted in August 1954, and provided for deductions equal to the "personal exemption" amount in computing taxable income. The exemption was intended to insulate from taxation the minimal amount of income someone would need receive to live at a subsistence level (i.e., enough income for food, clothes, shelter, etc.).
These expenses may only be deducted, however, to the extent they exceed 10% (7.5 % for 65 and over) of a taxpayer's AGI. [1] Accordingly, a taxpayer would only be entitled to deduct the amount by which these expenses exceed 10% of $100,000, or $10,000 with an adjusted gross income of $100,000 and medical expenses of $11,000.
For couples who file jointly, that standard deduction will be $30,000 for 2025, an $800 jump from the year prior. And heads of households will get a $22,500 standard deduction, up $600 from 2024.
The bill also increased the standard deduction, which significantly reduced the number of taxpayers who claim the SALT deduction. [25] As a result of the bill, the cost of the SALT deduction decreased from $104 billion in 2017 [26] to $10.4 billion in 2019. [27]
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related to: ar 750-6 standard deduction instructions for over 65