IRS announces 2026 inflation adjustments: All about tax deductions for people aged 65 and older
IRS: The additional standard deduction for heads of households and single filers aged 65 and over has gone up from $2,000 for 2025 to $2,050 for 2026.
The Internal Revenue Service (IRS) has announced inflation adjustments to several 2026 tax credits and deduction amounts. These include higher standard deduction amounts, new income tax bracket thresholds for 2026 and an increase in the extra standard deduction that taxpayers 65 and older are eligible for.
According to Kiplinger, many qualified retirees and older individuals may be able to reduce their taxable income by taking advantage of this additional standard deduction, which can be claimed in addition to the ordinary standard deduction.
In addition to those well-known yearly changes, the GOP's recently passed “Big, Beautiful Bill” adds a new bonus deduction for eligible older persons. Also accessible to itemisers, this additional advantage begins to apply for the 2025 tax year and lasts until 2028.
Additional standard deduction for aged 65 and over
The additional standard deduction for heads of households and single filers aged 65 and over has gone up from $2,000 for 2025 to $2,050 for 2026, as per the outlet.
Married couples over 65 who file jointly will also receive a little advantage in 2026: The additional deduction for each eligible spouse has gone up by $50 from $1,600 in 2025 to $1,650 in 2026. This results in a $100 increase in the additional standard deduction for couples with both partners 65 years of age or older.
On the other hand, blind people, who are 65 years of age or older, will continue to receive twice as much. That translates to an additional $4,100 for heads of family or single filers in 2026.
Rise in regular standard deduction
The standard deduction for all taxpayers has increased in tandem with the IRS's changes to the enhanced standard deduction for older persons.
The new Trump tax plan also went into effect on 4 July of this year, changing the 2025 standard deduction to $15,750 for single taxpayers, $31,500 for joint filers, and $23,625 for the head of household.
According to Kiplinger, the bill also creates a new, temporary, and distinct $6,000 bonus deduction for anyone 65 and above.
FAQs
What is the IRS?
The Internal Revenue Service (IRS) is a bureau of the Treasury Department responsible for collecting taxes and enforcing tax laws.
When was the One Big Beautiful Bill enacted?
The big bill was signed into law by President Donald Trump on 4 July 2025.
Who is the current United States Secretary of the Treasury?
The current United States Secretary of the Treasury is Scott Bessent.
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