Madison, WI – Many older residents in Wisconsin are unaware that they may be eligible for an extra standard deduction once they turn 65, potentially reducing their state tax burden. This provision is part of Wisconsin’s tax code and is specifically designed to provide financial relief for older taxpayers.
Understanding the Extra Deduction
Wisconsin’s extra standard deduction for seniors is an additional amount subtracted from taxable income. It applies to taxpayers aged 65 or older who meet certain filing requirements. This deduction is separate from the federal standard deduction and is calculated based on income, filing status, and other eligibility criteria.
According to the Wisconsin Department of Revenue, this extra deduction is automatically applied if a taxpayer’s age and other conditions are met when filing their state return. This means most seniors don’t have to file a separate claim for it.
Who Qualifies for the Deduction
To qualify, you must be:
- 65 years or older by the end of the tax year
- A Wisconsin resident for the full year
- Filing a state return that claims the standard deduction rather than itemizing deductions
In addition, income limits apply. Higher-income seniors may see the deduction reduced or phased out entirely. Married couples where both spouses are 65 or older may qualify for a combined higher deduction.
How Much Can Seniors Save?
The savings from this deduction can vary. For some lower-to-moderate-income seniors, it can mean hundreds of dollars in reduced tax liability. The amount is determined using a worksheet included in the Wisconsin state income tax instructions.
For example, a single filer aged 67 with moderate income may receive an extra deduction of several hundred dollars, reducing their taxable income and lowering their state tax bill.
Why the Deduction Matter
As living costs continue to rise, many seniors are looking for ways to stretch their retirement income. This extra deduction is one way the state offers targeted relief to older residents. Tax experts often recommend reviewing eligibility each year, as changes in income or marital status can affect the deduction amount.
Have you ever claimed Wisconsin’s extra standard deduction for seniors? Share your experience in the comments and help others learn how to benefit
