Older adults benefited from the largest cost of living adjustment for Social Security’s cost of living adjustment in 40 years, but taxes loom. 

To reduce taxable income, consider the extra standard deduction available to those 65 and older at year-end. 

The extra standard deduction for seniors lowers taxable income, potentially leading to a smaller tax bill. 

Eligibility for the additional standard deduction applies to taxpayers 65 or older, varying by filing status and blindness. 

For tax year 2023, those born before January 2, 1958, qualify as 65 years old for the additional standard deduction.

Blind individuals under 65 receive a standard deduction but not the larger one available to older individuals. 

Additional standard deduction amounts for 2023: $1,850 for single/head of household, $1,500 for married taxpayers. 

Extra standard deduction for those 65 and older and blind: $3,700 (single) and $3,000 (married, filing jointly or separately). 

These amounts supplement regular standard deductions, providing potential tax relief for eligible individuals. 

While 90% of Americans opt for the standard deduction, consider itemizing if major life events or significant expenses occurred.Â