Credit for the Elderly or the Disabled at a Glance
Bigger standard deduction And if you’re married and you’re both over 65, that increase amounts to $2,600 ($1,300 per spouse), a sizable tax advantage that can really save you money. What’s more: the standard deduction for seniors over 65 is even larger next year, growing to $14,050 for single filers in 2020.
The age amount tax credit is a non-refundable tax credit, claimed on line 30100 of the personal income tax return. This tax credit is available to individuals who are, at the end of the taxation year, aged 65 or older. The federal age amount for 2020 is $7,637 ($7,713 for 2021).
As tax season is coming to a close, working seniors should be aware of a change to California’s Earned Income Tax Credit (EITC). For the first time, seniors who work and make $16,750 or less may benefit from the credit. Seniors without children may earn up to $272 from the state EITC or $519 from the federal EITC.
You’re 65 or older on December 31 of the tax year. You qualified as head of household for at least 1 of the past 2 years. Your qualifying person died in the past 2 years. Your income is less than $79,539.
The 2017 federal tax law expanded the Child Tax Credit (CTC) to allow taxpayers to claim up to $500 as a nonrefundable “Credit for Other Dependents,” including elderly parents.
Standard Deduction Exception Summary for Tax Year 2021 If you are Married Filing Jointly and you OR your spouse is 65 or older, your standard deduction increases by $1,350. If BOTH you and your spouse are 65 or older, your standard deduction increases by $2,700.
8 Special Income Tax Benefits for Senior Citizens
Taxpayers who are at least 65 years old or blind can claim an additional 2021 standard deduction of $1,350 ($1,700 if using the single or head of household filing status). For anyone who is both 65 and blind, the additional deduction amount is doubled.
You are not eligible to claim the EITC if: Your filing status is married filing separately. You filed a Form 2555 (related to foreign earned income) You or your spouse are nonresident aliens.
Updated for Tax Year 2019 You can stop filing income taxes at age 65 if: You are a senior that is not married and make less than $13,850. You are a senior that is married, and you are going to file jointly and make less than $27,000 combined.
Kids and the earned income tax credit The child must be under 19 at the end of the year and younger than you or your spouse if you’re filing jointly, OR the child must be under 24 if he or she was a full-time student. There’s no age limit for kids who are permanently and totally disabled.
A senior property tax exemption reduces the amount seniors have to pay in taxes on properties they own. The state, county or city agency that collects your property taxes usually doesn’t tell you that you qualify for an exemption.
For example, a single 64-year-old taxpayer can claim a standard deduction of $12,550 on his or her 2021 tax return (it was $12,400 for 2020 returns). But a single 65 -year-old taxpayer will get a $14,250 standard deduction in 2021 ($14,050 in 2020).
Social Security benefits do not count as earned income under the program. You can, however, be on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) and claim an EITC as long as you have some form of earned income, including income from self-employment.