Members of the Maryland Association of Certified Public...

Tax answers

March 07, 1996

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: What are the standard deductions for 1995 if you are 65, both federal and state? What exemptions can you claim at 65?

A: The amount of the standard deduction available is generally based on filing status, although for Maryland, there are minimums and maximums depending on income. For 1995, the basic standard deductions for federal and Maryland purposes are as follows:

A5 Filing Status ........... Federal ...... Maryland

Joint or Surviving Spouse ... $6,550 .... $3,000-$4,000

Head of Household ........... $5,750 .... $3,000-$4,000

Single ......... ............ $3,900 .... $2,000-$3,000

Married Filing Separate ..... $3,275 .... $2,000-$3,000

In addition to the basic standard deduction, individuals age 65 or over and/or blind are entitled to additional deductions on their federal return. Maryland allows for additional exemptions of $1,000 for these individuals. The additional federal standard deductions are as follows: Joint or Surviving Spouse -- $750; Head of Household -- $950; Single -- $950.

The additional standard deduction is available for each instance in which the taxpayer and/or spouse is 65 or older, or blind. Exceptions to these rules apply to individuals who can be claimed as a dependent on another taxpayer's return, certain married individuals filing separately and nonresident aliens. In addition, the Maryland standard deduction may be limited depending on the level of taxable income.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

A joint service from The Sun and the Maryland Association of Certified Public Accountants can help you with your tax queries. Association members, all CPAs, will answer questions from readers until April 15. To ask a tax question, call Sundial, The Sun's telephone information service, at (410) 783-1800. Using a touch-tone phone, enter 6225 after you hear the greeting.

Callers are asked to leave their names and phone numbers, should questions need to be clarified. Selected questions will be answered in the Business section. No questions will be answered by phone.

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