Standard Deduction for Seniors – If you do not itemize your deductions , you can get a higher standard deduction amount if you and/or your spouse are 65 years old or older. You can get an even higher standard deduction amount if either you or your spouse is blind. (See Form 1040 and Form 1040A instructions.)
Adults who are 65 and older get an extra $1,600 added to their standard deduction if they’re filing as single, head of household, or married filing separately. Married couples filing jointly may add another $1,300 for each spouse who is 65 or older , as can qualified widow(er)s.
What it is: If you paid for someone to take care of your parent so you could work or actively look for work, you might qualify for a credit that generally runs 20% to 35% of up to $3,000 of adult day care and similar costs.
For 2020, the additional standard deduction for married taxpayers 65 or over or blind will be $1,300 (same as for 2019). For a single taxpayer or head of household who is 65 or over or blind, the additional standard deduction for 2020 will be $1,650 (same as for 2019).
At 65 to 67, depending on the year of your birth, you are at full retirement age and can get full Social Security retirement benefits tax -free.
If you’re single, you’ll need to file a return if you earned $11,900 or more. If you’re married filing jointly, that minimum goes up to $14,900 . If you’re a widower with one or more dependent children, you can make up to $17,900 without being required to file. How much you’ll have to pay is a little more complicated.
For the year you are filing, earned income includes all income from employment, but only if it is includable in gross income . Earned income does not include amounts such as pensions and annuities, welfare benefits, unemployment compensation, worker’s compensation benefits, or social security benefits.
If you work past your full retirement age (FRA) and have earned income, you’ll still have to pay Social Security taxes, even if you’re already collecting benefits.
If you cared for an elderly parent , your parent may qualify as your dependent , resulting in additional tax benefits for you. Once you determine that both of you meet IRS criteria, you can claim your parent as a dependent on your tax return.
Unlike children, parents don’t have to live with you at least half of the year to be claimed as dependents – they can qualify no matter where they live. As long as you pay more than half their household expenses, your parent can live at another house, nursing home , or senior living facility .
A qualifying person, which includes a parent , lived with you for more than half the year. If your qualifying person is your mother , she doesn’t have to live with you for more than half the year. However, you must be able to claim your mother as a dependent .
If you are age 65 or older, your standard deduction increases by $1,650 if you file as Single or Head of Household. If you are Married Filing Jointly and you OR your spouse is 65 or older, your standard deduction increases by $1,300.
If Single, aged 65 or older or blind, you must file a return if : Unearned income was more than $2,650 or $4,250 if you ‘re both 65 or older and blind. Earned income was more than $13,600 or $15,200 if you ‘re both 65 or older and blind.
Social Security benefits do not count as gross income . However, the IRS does count them in your combined income for the purpose of determining if you must pay taxes on your benefits.