Over-65 Exemption?

Discussion in 'Tax' started by Art, Sep 9, 2003.

  1. Art

    Art Guest

    Just a question:

    Did there use to be an extra Federal 1040 exemption for
    being blind or age 65?

    Or am I, having lived in several states, remembering these
    exemptions from a state return and just imagining they used
    to be Federal too?

    Will appreciate any wisdom on these mysterious exemptions
    and their disappearance, if any.

    Art

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    Art, Sep 9, 2003
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  2. Art

    Herb Smith Guest

    (Art) wrote:

    > Just a question:
    >
    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?
    >
    > Or am I, having lived in several states, remembering these
    > exemptions from a state return and just imagining they used
    > to be Federal too?
    >
    > Will appreciate any wisdom on these mysterious exemptions
    > and their disappearance, if any.


    There is currently no extra EXEMPTION amount for being over
    65 or blind, but rather an increased STANDARD DEDUCTION for
    same. Of course, if you itemize, you get no benefit from the
    higher standard deduction.

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    Herb Smith, Sep 10, 2003
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  3. > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?


    It left us about 1986 or so. But there was one.

    Helen, EA in PA
    Member of The Tax Gang
    President, PA Society of Enrolled Agents
    Campaigning for NAEA Board of Directors - Looking for YOUR vote

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    Helen P. OPlanick EA, Sep 10, 2003
    #3
  4. (Art) writes:

    > Just a question:
    >
    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?
    >
    > Or am I, having lived in several states, remembering these
    > exemptions from a state return and just imagining they used
    > to be Federal too?
    >
    > Will appreciate any wisdom on these mysterious exemptions
    > and their disappearance, if any.


    There are additional allowances for those over Age 65. The
    amounts have increased for 2003 but, for an idea of how it
    works, based on 2002 allowances, "The additional amount for
    age will be allowed if you are age 65 or older at the end of
    the tax year. You are considered to be 65 on the day before
    your 65th birthday. Therefore, you can take the additional
    amount for 2002 if your 65th birthday was on or before
    January 1, 2003.

    The additional amount for blindness will be allowed if you
    are blind on the last day of the tax year.

    For example, a single taxpayer who is age 65 and legally
    blind would be entitled to a basic standard deduction of
    $4,700 and an additional standard deduction amount of
    $2,300, which is $1,150 for being age 65 and $1,150 for
    being blind. The total standard deduction would be $7,000.

    If you or your spouse were 65 or older or blind at the end
    of the year, be sure to claim the additional standard
    deduction amounts by checking the appropriate boxes on Form
    1040A (PDF) or Form 1040 (PDF). The additional standard
    deduction amounts cannot be claimed on Form 1040EZ (PDF).

    Certain individuals are not entitled to the standard
    deduction. They are:

    A married individual filing a separate return whose spouse
    itemizes deductions,

    An individual who was a nonresident alien or dual status
    alien during any part of the year; or An individual who
    files a return for a period of less than 12 months due to a
    change in his or her annual accounting cycle."

    "Jack" - John H. Fisher -
    Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
    My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

    Where Ignorance is bliss, 'tis folly to be wise!=:)

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    John H. Fisher, Sep 10, 2003
    #4
  5. (Art) writes:

    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?


    There *is/are* (note present tense) exactly such an
    exemption(s), and have been for years.

    --
    Rich Carreiro

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    Rich Carreiro, Sep 10, 2003
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  6. Art

    Bill Guest

    Art asked:

    > Did there use to be an extra Federal 1040
    > exemption for being blind or age 65?
    > Or am I, having lived in several states,
    > remembering these exemptions from a state
    > return and just imagining they used to be
    > Federal too?
    > Will appreciate any wisdom on these
    > mysterious exemptions and their
    > disappearance, if any.


    First, Art, they aren't exactly extra "exemptions" -- but
    rather, additions to the "standard deduction." You'll find
    them immediately after the AGI at top of page 2 on 1040 and
    1040A forms. There are boxes to check if the TP (or Spouse,
    if MFJ) are 65 or blind -- and the total number of boxes
    checked (both MFJ TPs could be 65 and blind) is then
    multiplied by a number which is supplied (Last year it was
    $1150) -which is added to the normal standard deduction to
    arrive at a new total.

    Actually, all of this "math" is done for TPs in the
    instructions, where a chart is provided showing the correct
    total standard deduction for typical TP situations.

    This "special treatment" is often forgotten, since it
    doesn't apply to or affect those who itemize deductions.

    Bill

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    Bill, Sep 10, 2003
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  7. Art

    Phil Marti Guest

    (Art) writes:

    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?
    >
    > Or am I, having lived in several states, remembering these
    > exemptions from a state return and just imagining they used
    > to be Federal too?


    At one time the Federal return gave extra personal
    exemptions, but that was replaced with the standard
    deduction add-ons some years ago.

    Phil Marti
    Topeka, KS

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    Phil Marti, Sep 10, 2003
    #7
  8. Art <> wrote:

    > Just a question:
    >
    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?
    >
    > Or am I, having lived in several states, remembering these
    > exemptions from a state return and just imagining they used
    > to be Federal too?
    >
    > Will appreciate any wisdom on these mysterious exemptions
    > and their disappearance, if any.


    Yes, indeed, in the far distant past, when dinosaurs still
    roamed the earth, there was an additional personal
    exemption.

    Now there is a much smaller increase to the standard
    deduction.

    Nothing if the taxpayer finds it better to itemize.

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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    Arthur Kamlet, Sep 10, 2003
    #8
  9. Art

    John O'Brien Guest

    "Art" <> wrote:

    > Just a question:
    >
    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?
    >
    > Or am I, having lived in several states, remembering these
    > exemptions from a state return and just imagining they used
    > to be Federal too?
    >
    > Will appreciate any wisdom on these mysterious exemptions
    > and their disappearance, if any.


    Your recollection is correct.
    Before 1986, persons 65 or over got an additional personal
    exemption. Since that time the tax break for such people
    has taken the form of an addition to the standard deduction.
    Therefore, no break for seniors who itemize deductions.
    The same applies to the blind.

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    John O'Brien, Sep 10, 2003
    #9
  10. Art

    Shagnasty Guest

    "Art" <> wrote:

    > Just a question:
    >
    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?
    >
    > Or am I, having lived in several states, remembering these
    > exemptions from a state return and just imagining they used
    > to be Federal too?
    >
    > Will appreciate any wisdom on these mysterious exemptions
    > and their disappearance, if any.


    Yes there used to be extra exemptions for age and blindness.
    They were replaced by increases in the Standard deductions
    about 1986.

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    Shagnasty, Sep 10, 2003
    #10
  11. Art

    Wayne Brasch Guest

    "Art" <> wrote:

    > Just a question:
    >
    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?
    >
    > Or am I, having lived in several states, remembering these
    > exemptions from a state return and just imagining they used
    > to be Federal too?
    >
    > Will appreciate any wisdom on these mysterious exemptions
    > and their disappearance, if any.


    You are not imagining these things. They were used quite a
    few years ago, but no longer exist.

    Wayne Brasch, CPA, M. S. Taxation

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    Wayne Brasch, Sep 10, 2003
    #11
  12. Art

    Guest

    (Art) wrote:

    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?


    See obverse of IRS F1040. Standard decuction increased for
    over 65 and.or blind. Calif increases tax credit by $80 for
    65+ and/or blind. Frank, Tax-Aide

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    , Sep 10, 2003
    #12
  13. Art

    D. Stussy Guest

    Art wrote:

    > Just a question:
    >
    > Did there use to be an extra Federal 1040 exemption for
    > being blind or age 65?


    Yes. Prior to 1987, it was an exemption. Since 1986, it
    has been an increased standard deduction, not an exemption.

    > Or am I, having lived in several states, remembering these
    > exemptions from a state return and just imagining they used
    > to be Federal too?


    I don't know what you imagine, but they were federal prior to 1987.

    > Will appreciate any wisdom on these mysterious exemptions
    > and their disappearance, if any.


    There is no wisdom where Congress was involved.

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    D. Stussy, Sep 12, 2003
    #13
  14. Art

    Art Guest

    I appreciate all this great information about over-65
    exemptions. Thanks to everyone who responded, my failing
    memory generated a history lesson for the young among us and
    a nostalgia trip for the dino--uh, I mean the more mature.
    :eek:]

    Since I do itemize, the standard deduction for seniors
    doesn't affect me. It was those fat exemptions I
    remembered, near the top of page 1 of the 1040 where those
    inviting but off-limits check-boxes imprinted themselves on
    my brain long before I had any use for them. Boy (and girl
    too, of course), would they make a difference now!

    One good thing is the California credit mentioned by Nan
    Eklund, since I can make use of that. But it just isn't the
    same for us denizens of the pre-Bradley Jurassic Park is it?

    Art

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    Art, Sep 12, 2003
    #14
  15. Nan Eklund <> wrote:

    > Grrrrrrrrrr. One of the many things I hated in the 1986 changes.
    > Yes - if you were 65 you got an extra personal exemption.
    > Now - if you hit 65, you may add an extra amount to your standard
    > deduction. Of course, if you itemize, you get NOTHING.
    >
    > This is one of the FEW areas in which California kept a
    > break for the older taxpayers. We still have an extra
    > personal subtraction from the tax in addition to the
    > personal exemption.


    Ohio allows an Ohio tax credit of $50 for taxpayer or spouse
    age 65 or older.

    Ohio allows one such tax credit per tax return, so taxpayers
    filing MFS can get two such tax credits.

    Ohio also allows a $200 max tax credit for pension income of
    at least $8000, one credit per tax return.

    If social security is not an issue, either because the
    couple has maxed out their 85% of social security level, or
    because, for example, the couple worked for a school
    district or state or local gov't and receive no social
    security, it again pays to file MFS.

    And Ohio has a steeply graduated tax schedule that, for the
    most part, does not depend on filing status, so it is not
    surprising that lots and lots of people file MFS in Ohio.

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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    Arthur Kamlet, Sep 12, 2003
    #15
  16. <> wrote:
    > (Art) wrote:


    >> Did there use to be an extra Federal 1040 exemption for
    >> being blind or age 65?


    > See obverse of IRS F1040. Standard decuction increased for
    > over 65 and.or blind. Calif increases tax credit by $80 for
    > 65+ and/or blind. Frank, Tax-Aide


    First, thanks very much for being a TaxAide counselor.

    Next, I have to quibble with you on the use of "obverse"
    which I've never heard used outside of numismatics. I
    think you mean the Reverse side of Form 1040. The Obverse
    side contains the taxpayers' Name, Address & SSNs.

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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    Arthur Kamlet, Sep 12, 2003
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  17. Art

    Nan Eklund Guest

    Ohio sounds lovely. Except: you have city income tax in
    Akron, Cincinnati, Cleveland, Dayton, Toledo and Youngston
    (at the last time I looked it up). Our rotten legislature is
    contemplating allowing "governmental entities" in California
    to establish income taxes. I am soooooo looking forward to
    doing Federal, state, COUNTY and CITY. NOT!!!

    Nan, EA in LA

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    Nan Eklund, Sep 14, 2003
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  18. Art

    Guest

    (Arthur Kamlet) wrote:

    > Next, I have to quibble with you on the use of "obverse"
    > which I've never heard used outside of numismatics. I
    > think you mean the Reverse side of Form 1040. The Obverse
    > side contains the taxpayers' Name, Address & SSNs.


    You are correct. I realized that right after I pressed the
    send button. Ever try to recall an email or posting?? I
    really was not trying to be obtuse or perverse.

    Frank, Tax-Aide

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    , Sep 14, 2003
    #18
  19. Nan Eklund <> wrote:
    > Ohio sounds lovely.


    I like living here, but was not in anyway trying to sell you on
    the nicities of its tax structure - quite the opposite.

    > Akron, Cincinnati, Cleveland, Dayton, Toledo and Youngston
    > (at the last time I looked it up).


    I live in Franklin County, one of 88 Ohio counties but one
    of the larger population ones, and in Franklin County alone
    quite a few municipalities have an income tax, including
    Columbus, Bexley, Canal Winchester, Gahanna, Reynoldsburg,
    Worthington, Westerville, Dublin, Grove City and, I'm sure,
    more (this is just from memory).

    Each municipality can choose to give full, partial or zero
    credit to taxpayers who have paid municipal income tax to
    their workplace city.

    SO a carpenter who is employed in 18 different cities that
    impose income tax and lives in a city that has an income tax
    has a somewhat nasty municipal tax situation. And while
    UltraTax Ohio cities solution is OK - it breaks down past 3
    cities, much less 18. That means hand calculations.

    Well, as Helen has always said, if you can't do tax returns
    by hand, you have no business using a computer, And if she
    never said it, I will :^)

    > Our rotten legislature is
    > contemplating allowing "governmental entities" in California
    > to establish income taxes. I am soooooo looking forward to
    > doing Federal, state, COUNTY and CITY. NOT!!!


    OH county taxes apply to individual taxpayers filing
    schedule C with YE inventories who are not current in their
    tax filing.

    But more importantly, many school districts now impose a
    school district income tax, so - for example, a Reynoldsburg
    resident will likely pay federal, state, city and school
    district income tax.

    Oh joy.

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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    Arthur Kamlet, Sep 16, 2003
    #19
  20. Art

    Nan Eklund Guest

    For once this year I'm relieved I live in California.
    Used to teach income tax preparation and had a little list -
    of CP states, of states with no income tax, and of cities
    with income tax. I'm so glad I never checked with an Ohioan
    or the list would have been impossible. Thanks

    Nan, EA in LA

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    Nan Eklund, Sep 17, 2003
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