With age comes wisdom, as well as certain tax breaks. While seniors often face lower income and higher expenses (think health care and assisted living), there are also numerous federal and state rules aimed at easing their tax burden. Many seniors have questions about the new Tax Cuts and Jobs Act and how it will affect them, and there are significant changes for most filers.
Here are some tax breaks and tips to remember during the golden years.
The standard deduction has nearly doubled. This means that for about 94 percent of Americans, the standard deduction will make it no longer beneficial to itemize.The standard deduction is now $12,000 for single taxpayers and $24,000 for married couples.
Seniors still get a bit of a bump. Single taxpayers 65 and older can deduct an additional $1,600; for couples, the increase is $1,300 if one spouse is 65 or older and $2,600 if both spouses are at least 65.