Indianapolis, IN – Many older Hoosiers may be missing out on valuable state tax savings due to Indiana’s extra standard deduction for residents aged 65 and older. This benefit can significantly reduce taxable income for qualifying seniors, but understanding the eligibility rules and claiming process is key.
What Is the Extra Standard Deduction?
Indiana allows qualifying seniors to claim an additional deduction beyond the standard state deduction. This extra deduction helps reduce the amount of taxable income, which in turn can lower the state income tax owed.
According to the Indiana Department of Revenue, the extra standard deduction is designed to support residents over the age of 65 by easing their tax burden, especially those on fixed retirement incomes.
Who Qualifies for the Deduction?
To qualify for Indiana’s extra standard deduction for seniors:
- You must be 65 years old or older by the end of the tax year.
- You must have been a resident of Indiana for the entire tax year.
- You must meet income limitations set by the state for the tax year.
This deduction is available whether you file as single, married filing jointly, or married filing separately, though the amounts may differ depending on filing status.
How Much Can You Claim?
The deduction amount can vary based on your income and filing status. While the base standard deduction applies to all taxpayers, qualifying seniors can add the extra deduction on top of that, reducing taxable income even further.
For some retirees, this can mean hundreds of dollars in state tax savings each year. However, income thresholds apply, so higher-income seniors may not qualify for the full benefit.
How to Claim the Deduction
When filing your Indiana state tax return, you’ll need to:
- Indicate your age and eligibility on the state form.
- Provide documentation if requested, such as proof of age and residency.
- Double-check income limits before claiming the deduction to ensure you qualify.
Tax experts recommend that seniors consult a professional or use reputable tax software to ensure they are maximizing their available deductions.
Why This Matters for Indiana Seniors
With rising costs of living, every dollar saved on taxes can make a meaningful difference for retirees. The Indiana extra standard deduction is a straightforward way to reduce your state tax bill if you qualify.
Seniors should review their eligibility annually, as changes in income, marital status, or residency can affect qualification.
Are you or someone you know over 65 in Indiana? Have you claimed this deduction before? Share your experiences in the comments below.
