Tax deductions changed not long ago. That is why some people who have just become retirees may not have updated news. It was in 2017 when the United States tax code changed. This is important because it affects income tax rates as well as deductions citizens can benefit from. Thus, it modifies the way and the amount people have to pay in taxes.
According to the Internal Revenue Service, there are three types of basic deductions. For instance, if you are a married couple that files jointly, you can deduct up to 25,900 dollars for the 2022 tax year. That is the filing process in 2023, from January 23 to April 18. On the other hand, deductions for single filers reach $12,950. Those heads of household have a deduction of up to $19,400.
What is the standard deduction for people who are 65 or older?
Luckily, those taxpayers who have reached the age of 65 have the right to claim what is known as an additional standard deduction. That means the IRS allows you to have an extra or additional deduction if you are 65 or older and do not itemize. That must be at the end of the tax year. Remember that the IRS considers you to be a 65-year-old the day before you turn 65.
Do not forget that you can also have an additional deduction for being blind. That must be if you are blind at least on the last day of the tax year. The standard deduction for the 2022 tax year is 14,700 dollars if you are 65 or older and filing single. Those who are 65 or older, married, and file jointly can deduct $27,300. It could be $28,700 if both are at least 65. Head of households have a deduction of 21,150 for the 2022 tax year.
What is the standard deduction for the tax year 2023?
The Internal Revenue Service or IRS informed of the tax inflation adjustment for 2023. According to the IRS, the dollar amounts which are more interesting to most taxpayers are the following ones. For those who are single filers or married individuals, there is a standard tax deduction of 13,850 dollars for 2023. Therefore, it has increased by 900 dollars.
What is more, married couples who decide to file together or jointly for the 2023 tax year can deduct as much as $27,700. Following the pattern of single filers it has increased by 900 dollars per person, that is $1,800 in total. Heads of households have a standard tax deduction of up to $20,800 for the 2023 tax year. It has gone up by 1,400 dollars in this case. Those who are 65 years old can claim an additional standard deduction of $1,500, or $1,850 for heads of household in 2023. Being blind could increase this amount too.