If you turned 65 last year, you have a tax break coming your way. The standard deduction for people 65 and over has gone up from $6,300 to $7,850 for single filers. If you normally itemize your deductions, it may be time to reconsider.
Many 65 year olds are newly retired, so itemizing costs like business travel, home office, and union fees may be a thing of the past. This means that a $1,550 bump in the standard deduction probably makes this an easy, but often overlooked choice.
According to Kiplinger, by taking the standard deduction, you'll save almost $400 in taxes if you're in the 25% tax bracket. Be sure to analyze your situation, talk to a professional if you need to, and make the right choice for you.
Tax Breaks Overlooked by New Retirees | Kiplinger
Photo by 401(k) 2012.
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