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.
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.