As it does each year, the IRS has announced inflation adjustments to several important credit and deduction amounts, set to take effect in 2025. This includes (but isn’t limited to) new 2025 income tax brackets and increases to the standard deduction and the additional standard deduction for those aged 65 and older.
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As Kiplinger has reported, the extra standard deduction, which is claimed on top of the regular standard deduction, can help reduce taxable income and the overall tax burden in retirement for millions of older adults.
Here’s more to know to plan for returns you’ll file in early 2026.
Over 65 additional standard deduction for 2025
For single filers and heads of households age 65 and over, the additional standard deduction will increase slightly — from $1,950 in 2024 (returns you’ll file soon in early 2025) to $2,000 in 2025 (returns you’ll file in early 2026).
For 2025, married couples over 65 filing jointly will also see a modest benefit.
- The extra deduction per qualifying spouse will increase from $1,550 in 2024 to $1,600 in 2025, a $50 increase per qualifying spouse.
- For couples where both partners are 65 or older, this translates to a total increase of $100 in their additional standard deduction.
Those 65 or older and blind will continue to receive double the additional amount. In 2025, this will mean an extra $4,000 for single filers or heads of household. (Twice the $2,000 for those 65 or older or blind.)
Meanwhile, the amount will be $3,200 per qualifying spouse for those married filing jointly (i.e., $1600 x 2).
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Regular standard deduction rises for 2025
The IRS adjustments to the extra standard deduction for older adults come alongside increases in the standard deduction for all taxpayers.
The Tax Policy Center and other groups estimate that around 90% of people take the standard deduction rather than itemizing.) That’s especially true given the major increase to the base deduction under the Tax Cuts and Jobs Act (TCJA).
- For 2025, the standard deduction will rise by $400 to $15,000 for single filers, $800 to $30,000 for married couples filing jointly, and $600 to $22,500 for heads of household.
- These increases may help offset the reduction in the additional standard deduction for some taxpayers over 65.
For example, when combined with the regular standard deduction, the total standard deductions for older adults in 2025 will be:
- $17,000 for single filers or heads of household aged 65 and over
- $33,200 for married couples filing jointly where both spouses are 65 or older
Impact of 2025 deduction changes
These changes are typically an issue for those deciding between taking the standard deduction and itemizing.
While the changes may seem small, depending on the financial situation and federal income tax bracket, some taxpayers over 65 may benefit from a modest tax reduction.
It’s also worth noting that the IRS announced inflation-adjusted federal income tax brackets for 2025.
- The income thresholds will rise by about 2.8% from 2024 levels.
- This increase is smaller than in previous years, likely reflecting some recent cooling of inflation.
However, if the U.S. Congress doesn’t act, many key federal tax provisions in the TCJA, including the higher base standard deduction and lower tax rates, will expire at the end of 2025.
So, as always, stay informed about these and other potential changes.
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Also, consider consulting with a tax professional to understand how new deduction amounts may (or may not) affect your overall tax situation for the 2025 tax year and beyond.
