What are the standard deductions for 2025?

What is the standard deduction for 2025?

The standard deduction for 2025 was raised to $15,750 for single filers, up from the $15,000 previously in place. For married couples filing jointly, it is increased to $31,500, up from $30,000. And for heads of households, their standard deduction will be $23,625, up from $22,500.

What is the standard deduction for senior citizens?

A Senior/Super Senior citizen can claim a deduction upto Rs. 50,000/- u/s 80TTB in respect of interest income earned on savings bank accounts, bank deposits, or any deposit with the post office or co-operative banks.

What will the standard deduction be in 2026 over 65 calculator?

Seniors over age 65 may claim an additional standard deduction of $2,050 for single filers and $1,650 for joint filers.

Can a senior citizen claim both standard deduction and 80TTB?

No, you cannot claim both 80TTA and 80TTB deductions in the same financial year. While 80TTA applies to individuals under 60, 80TTB is exclusively for senior citizens, providing a higher deduction limit on interest income. Is 80TTB applicable in new tax regime? No, 80TTB is not applicable under the new tax regime.

What are the changes in income tax rule for April 2025?

Higher basic exemption limit – Currently set at Rs. 3 lakh, the basic exemption limit will be increased to Rs. 4 lakh from April 1, 2025 (FY 2025-26), providing additional tax relief to all individual taxpayers.

What are the changes to Social Security in 2025?

The COLA was 2.5 percent in 2025. Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025. (Note: Some people receive both Social Security benefits and SSI).

What is the new tax regime for senior citizens?

In the old tax regime , the basic exemption limit for senior citizens is Rs. 3,00,000/- and for super senior citizens, it is Rs. 5,00,000/-. In the new tax regime, no income tax is payable upto the total income of Rs. 7 lakh.

What is the tax allowance for 2025-26 UK?

For the 2025/26 tax year in England, Wales and Northern Ireland, these are: Personal Allowance: You do not pay any tax on earnings up to £12,570. Basic rate: You will pay 20% tax on anything you earn between £12,571 and £50,270. Higher rate: You will pay 40% tax on anything you earn between £50,271 and £125,140.

How to calculate tax as per 2025 budget?

Budget 2025 Updates on Income Tax

Meaning, no tax liability on income up to ₹12 lakh under the new tax regime. The TDS limit on rent has been increased to ₹50,000 per month for FY 2025-26. The limit on tax deduction on interest for senior citizens has been increased from ₹50,000 to ₹1,00,000.

What is the standard deduction for over 65 years old?

IRS extra standard deduction for older adults

For 2025, the additional standard deduction is $2,000 if you are single or file as head of household. If you're married, filing jointly or separately, the extra standard deduction amount is $1,600 per qualifying individual.

What's the maximum Social Security tax for 2025?

The limit on annual earnings subject to Social Security taxes is referred to as the taxable maximum or the Social Security tax cap. For 2025, that maximum is set at $176,100, an increase of $7,500 from last year.

Is it better to itemize or take standard deduction?

Taking the Standard Deduction might be easier, but if your total itemized deductions are greater than the Standard Deduction available for your filing status, saving receipts and tallying those expenses can result in a lower tax bill.

What is the deduction for over 65 in 2025?

From 2025 to 2028, adults age 65+ can claim a temporary bonus deduction of $6,000 if single or $12,000 if married filing jointly. For the 2025 tax year, the total standard plus bonus deduction for those age 65 and older is $21,750 for a single person and $43,500 for a married couple filing a joint return.

Do senior citizens have to pay tax on FD interest?

FD Interest Tax for Senior Citizens

Senior citizens receiving interest income from FDs can avail TDS exemption up to ₹1 lakh per year (for FY 2025-26). Till March 2025, senior citizens can claim tax exemption up to ₹50,000. However, those falling below the taxable limit, can claim tax exemption by submitting Form 15H.

What is the tax deduction for super senior citizens?

50,000 for the individual and their family members, and another Rs. 50,000 for their parents. The maximum amount of deduction is Rs. 1,00,000 or the actual amount incurred, whichever is lower.

What deductions can I claim if I take the standard deduction?

You can deduct these expenses whether you take the standard deduction or itemize:

• Alimony payments.
• Business use of your car.
• Business use of your home.
• Money you put in an IRA.
• Money you put in health savings accounts.
• Penalties on early withdrawals from savings.
• Student loan interest.
• Teacher expenses.

How does the standard deduction affect my tax bracket?

The rates apply to taxable income—adjusted gross income minus either the standard deduction or allowable itemized deductions. Income up to the standard deduction (or itemized deductions) is thus taxed at a zero rate. Federal income tax rates are progressive: As taxable income increases, it is taxed at higher rates.

What is the standard deduction for single people?

Key takeaways. The standard deduction is an amount you can deduct from your gross income that is adjusted every year to keep up with inflation. The amount is determined by your filing status, age, and dependency status. The standard deduction for single filers is $15,750.