Q:

What tax benefits are available for a person over 65?

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Quick Answer

Tax advantages for people over the age of 65 include the Credit for the Elderly or the Disabled, an increased standard deduction and increased tax-deductible contributions to an IRA. Individuals may also be eligible to claim the Child and Dependent Care Credit and Earned Income Credit, states the IRS.

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What tax benefits are available for a person over 65?
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Full Answer

As of 2014, individuals over the age of 65 qualify for the Credit for the Elderly or the Disabled if their adjusted-gross income does not exceed $17,500 and their non-taxable social-security and annuity income does not exceed $5,000 for singles, advises the IRS. This amount is higher for married couples.

Single taxpayers 65 and older also receive an additional $1,550 on their standard deduction, as of 2014, states Nolo. Married taxpayers receive an additional standard deduction of $1,200.

Individuals may continue to make tax-deductible contributions to a traditional IRA until they reach the age of 70 1/2. As of 2014, individuals over the age of 50 may contribute an additional $1,000 per year for a total of $6,500 to their IRA, according to the IRS.

The Child and Dependent Care Credit may equal up to 35 percent of a taxpayers expenses if they are caring for a child under the age of 13 or a spouse who is unable to care for themselves, states the IRS. In addition, if the taxpayer earns less than $46,997 per year for singles and $52,427 for married individuals, as of 2014, he may qualify for the Earned Income Credit.

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