Bigger Standard Deduction
As soon as you turn 65, Uncle Sam will offer you a gift in the form of a standard deduction. For instance, when it comes to 2020 returns, a single 64-year-old will most likely get a standard deduction of $12,400, respectively $12,550 for 2021, while a single 65-year-old will get a $14,050 deduction (and $14,250 for 2021).
This means that you’ll get an extra $1,700 as soon as you turn 65. And if you’re in the 24 percent bracket, the additional amount of money could save you more than $400. Plus, if your spouse is 65 too (or older), you can get bigger standard deductions. If it’s possible, please take advantage of your age!