For example, if you make $50K and you are 75 years old, do you pay less in taxes than if you made $50K and you were 25 years old?
2007-09-05 17:02:34 · 8 answers · asked by pokerstar 1 in Business & Finance ➔ Taxes ➔ United States
Actually, you are correct in that the older person may pay less tax.
Persons age 65 or older receive an additional standard deduction, which reduces their taxes owed, but not by much.
An unmarried taxpayer age 65 or older receives an additional $1,250 standard deduction. A married taxpayer age 65 or older receives an additional $1,000 standard deduction.
The older taxpayer may pay quite a bit less tax if his income is from pensions or social security benefits. No SS or Medicare tax is paid on these amounts. Social Security benefits are between 15% - 100% tax free as well.
2007-09-05 17:11:52 · answer #1 · answered by ninasgramma 7 · 4⤊ 1⤋
The tax rate doesn't change, but you might pay very slightly less. If you are 65 or older, and take a standard deduction, you get a slightly higher amount. It might save you a few hundred dollars in taxes. If you itemize, then there is no difference depending on age.
2007-09-05 17:11:56 · answer #2 · answered by Judy 7 · 3⤊ 0⤋
The tax rate doesn't change, but you get an added duduction amount if you're 65 or older. Also, your social security payments are factored into your total income so that you might not have to pay any tax at all on the social security part of your income, depending on your total income for the year from all sources.
But the tax rate doesn't change. You just get a few added benefits. (Wouldn't it be great if you paid NO tax on social security payments?)
2007-09-05 17:58:51 · answer #3 · answered by Let me steer you 7 · 2⤊ 0⤋
You will pay slightly less as you will get an extra standard deduction amount once you are over 65. The savings isn't very much, however, and will only apply if you take the standard deduction.
2007-09-05 17:27:15 · answer #4 · answered by Bostonian In MO 7 · 2⤊ 1⤋
no
income is income. its about deductions be it children, spouses, homes, etc.
All those things effect your tax bracket (rate at which you are taxed)
2007-09-05 17:10:55 · answer #5 · answered by Ravin 5 · 0⤊ 2⤋
It's all about the yearly income. The IRS really doesn't care how old you are.
2007-09-05 17:12:43 · answer #6 · answered by SCOTT P 1 · 1⤊ 2⤋
No, age has nothing to do with taxes.
2007-09-05 17:10:04 · answer #7 · answered by Marc G 6 · 0⤊ 2⤋
wishful thinking
2007-09-05 17:08:18 · answer #8 · answered by acurodd 2 · 1⤊ 2⤋