No 2020 inflation adjustments for over age 65 extra standard deductions ??

[Alexi]

In November the IRS published its inflation adjusted figures for tax year 2020 [see links below.]

The regular standard deductions are increasing due to inflation as they normally do. But the over age 65 and/or blind extra standard deductions which are normally also raised for inflation are NOT being raised for inflation for tax year 2020.

Anyone know why ??


IRS provides tax inflation adjustments for tax year 2020

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2020

Several financial websites verify - the extra standard deduction for over age 65 and blind remains at the same 2019 level.

https://www.google.com/search?lr=&h...0+irs+tax+inflation+adjustments+over+65+blind

 

[audreyh1]

My only guess is because they were never inflation adjusted?

 

[Alexi]

My only guess is because they were never inflation adjusted?

The over age 65 extra standard deduction has been inflation adjusted and increased along with the regular standard deduction. I do my own taxes and I have kept records of this extra over age 65 deduction since before I turned 65. I know for a fact it was inflation adjusted and increased in 2016, 2017, 2018 and 2019. But for some odd reason not in 2020 ?

 

[Bir48die]

Standard deduction went up MFJ +$400 from last year. Not sure why the over 65 should go up too. Everyone got a bump.

 

[Animorph]

I would guess that with the rounding to the nearest $50 (is that right?), the 2019 adjustment was a little higher than the "exact" number. The 2020 adjustment is probably a little lower than the "exact" number. Just one of those weird things, like when percentage breakout numbers don't add up to 100% because they've been rounded.

 

[audreyh1]

The over age 65 extra standard deduction has been inflation adjusted and increased along with the regular standard deduction. I do my own taxes and I have kept records of this extra over age 65 deduction since before I turned 65. I know for a fact it was inflation adjusted and increased in 2016, 2017, 2018 and 2019. But for some odd reason not in 2020 ?

OK, I am obviously wrong. I had only ever seen the $1500 number.

 

[Sunset]

Standard deduction went up MFJ +$400 from last year. Not sure why the over 65 should go up too. Everyone got a bump.

Because the deductions this year for over 65 are now less in real dollar value compared to a 25 yr old compared to last year.

And if it continues, in 40 years, the over 65 deduction will be nearly worthless, and even the 25 yr old will be complaining about it.