Baltimore, MD – Seniors in Maryland may be eligible for an extra standard deduction on their state taxes, potentially lowering their overall tax burden in 2025. This benefit is specifically available to residents aged 65 and older, giving retirees and older taxpayers a chance to retain more of their income.
What Is the Extra Standard Deduction?
The extra standard deduction is an additional tax break offered on top of the regular deduction amount. For qualifying Maryland residents, this can mean hundreds of dollars in additional tax savings each year. The exact amount depends on filing status, taxable income, and state guidelines.
According to the Maryland Comptroller’s Office, this deduction is intended to offset some of the financial challenges faced by older residents, especially those on fixed incomes. It is separate from federal deductions and applies only to Maryland state income taxes.
Who Qualifies for the Deduction?
To be eligible, taxpayers must meet these criteria:
- Be 65 years of age or older before the end of the tax year
- Be a Maryland resident for the tax period in question
- File a return claiming the standard deduction rather than itemizing
Couples filing jointly may both qualify for the extra deduction if each spouse meets the age requirement.
How Much Can Seniors Save?
While the exact deduction amount can change annually due to inflation adjustments, Maryland law sets minimum and maximum limits. For example, in recent tax years, seniors could see an additional deduction of up to $2,400 beyond the regular standard deduction. This amount directly reduces taxable income, which can be especially valuable for retirees living on pensions, Social Security, or savings.
How to Claim the Extra Deduction
Claiming the extra standard deduction is relatively straightforward. Taxpayers need to:
- Indicate their age on the Maryland state tax form
- Ensure they select the standard deduction option rather than itemized deductions
- Verify eligibility before filing to avoid errors
If using tax software, the system will usually prompt the filer to input their date of birth and apply the deduction automatically. For those filing by hand, instructions are provided in the Maryland tax booklet.
Why This Matters for Maryland’s Aging Population
Maryland has a growing senior population, and rising living costs make every tax saving critical. The extra standard deduction is designed to ease financial strain for older residents and help them maintain financial independence.
For seniors unsure whether they qualify or how to apply, the Maryland Comptroller’s website offers guidance and resources, and local tax assistance programs can provide free help to those with limited incomes.
Do you think more states should offer similar tax breaks for seniors? Share your thoughts in the comments.
