In the past, there was an extra exemption when you reached age 65. Now, if you are age 65 or older on the last day of the year and do not itemize deductions, you are en-titled to a higher standard deduction. If you are Single and 65 or older, you get a standard deduction of $7.600, which is $1,500 more than those under age 65. If you are married, you get an additional $1,200 standard deduction. This additional amount is shown on Form 1040, Line 40.
Each person claimed on a tax return is eligible for the $3,900 personal exemption. A very long time ago, the IRS used to allow extra personal exemptions for being over 65 and/or blind. They no longer allow this. However, once you turn 65, if you do not itemize your deductions, your standard deduction increases. To see the rules about the higher standard deductions for over 65 and/or blind, you can refer to http://www.irs.gov/publications/p554/ch04.html