As it does each year, the IRS implemented inflation adjustments to several important credit and deduction amounts for 2025. This includes (but isn’t limited to) new 2025 income tax brackets and increases to the standard deduction and the additional standard deduction for those aged 65 and older. (You'll use these amounts when you file your 2025 tax return in a few short months.)
As Kiplinger has reported, the extra standard deduction, which is claimed on top of the regular standard deduction, can help reduce taxable income and the overall tax burden in retirement for millions of older adults.
