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Question about US taxes (from a senior's perspective - Todd's keyboard - 02-22-2024
Do I understand correctly that the deductible amount in the US tax code is greater for seniors? Is a standard deduction $29,200 for a married-filing-separately senior, and only $13,850 for the same status but a non-senior?
I've been assuming that I have to pay taxes on withdrawals from an IRA. This higher deduction allowed for seniors will change my withdrawal strategy.
thank$, Todd'$ tax freeboard?
Re: Question about US taxes (from a senior's perspective - rgG - 02-22-2024
The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023. For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.
The $29,200 is married filing jointly, not separately
I have never known of any special rate for seniors
Re: Question about US taxes (from a senior's perspective - Todd's keyboard - 02-22-2024
Yes, I'm reading the Standard Deduction Chart on page 4 of form 1040-SR (US Tax Returns for Seniors).
In my excitement, I didn't notice the $29,200 is for Married filing jointly. (not Married filing separately)
It appears the standard deduction is $15,350 for one person filing as Married filing separately. I think it's only $14,850 for non-seniors filing as Married filing separately.
Still, a bit better.
T's not-so-free-as-before board
Re: Question about US taxes (from a senior's perspective - wurm - 02-22-2024
One advantage to using one of those programs (or a paid preparer) to do your taxes.
From the FreeTaxUSA Support page:
If you are age 65 or older, you are eligible for an extra exemption that gives you a larger Standard Deduction. The software will automatically calculate the adjusted Standard Deduction based off the birth date you enter on the Taxpayer Information page.
Re: Question about US taxes (from a senior's perspective - Todd's keyboard - 02-22-2024
Tried that last year with several different online programs. Being a non-resident was just enough to not have the programs work. At least, not any way that I was filling out the forms.
thanks again, T's k
Re: Question about US taxes (from a senior's perspective - $tevie - 02-23-2024
The higher deduction is for seniors who don't itemize.
https://www.irs.gov/individuals/seniors-retirees/tips-for-seniors-in-preparing-their-taxes
Re: Question about US taxes (from a senior's perspective - rgG - 02-23-2024
Well, I didn’t know seniors got a little higher deduction
Glad the software computes that.
Re: Question about US taxes (from a senior's perspective - bfd - 02-23-2024
It all goes out the window at the end of 2025, so don't get too comfortable… unless you're a corporation that is - they went from topping out at 35% to a permanent flat rate of 21%. Or did you forget? That was the idea…
At the end of 2025, almost all of the individual, estate, and pass-through provisions of the Tax Cuts and Jobs Act (TCJA) will expire. This looming expiration creates an important opportunity to improve tax policy along multiple dimensions at the same time that TCJA provisions are evaluated for possible extension… the legislation also eliminated the personal exemption and limited itemized deductions. Since the standard deduction was made so generous, this was less of a concern for many tax filers. If the changes sunset in 2026, the standard deduction will be essentially halved, and itemized deductions will make a comeback.
Re: Question about US taxes (from a senior's perspective - Fritz - 02-23-2024
the standard deduction for seniors is bend over.
the standard deduction for the wealthy is bend everyone else over
Re: Question about US taxes (from a senior's perspective - Wags - 02-24-2024
Fritz wrote:
the standard deduction for seniors is bend over.
the standard deduction for the wealthy is bend everyone else over
Just as bad is the state and county if they get a lot of revenue from property tax. Mine have gone up more than four times the rate of inflation. Here it’s got to be the number one cause of forcing retirees out of their homes.