Navigating taxes in retirement can be confusing—but there are meaningful tax breaks available specifically for older adults. Whether you’re filing for yourself or helping a loved one, understanding these opportunities could lead to major savings.
Increased Standard Deduction for Seniors
If you’re 65 or older, the IRS offers a higher standard deduction. For the 2024 tax year:
- Single filers aged 65+ receive an additional $1,950
- Married couples filing jointly can receive up to $3,100 if both are over 65
This higher deduction means you can reduce more of your taxable income without itemizing.
Credit for the Elderly or Disabled
This lesser-known credit can provide up to $1,125 in tax savings. To qualify, you must be:
- Age 65 or older, or permanently disabled
- Meet income and nontaxable Social Security income limits
Eligibility varies, so it’s important to check IRS Schedule R and Publication 524 for current rules.
Tax Exemption for Social Security Income
Many seniors don’t pay taxes on Social Security benefits, depending on their overall income.
- If your combined income (adjusted gross income + nontaxable interest + half of your Social Security) is under $25,000 for single filers or $32,000 for joint filers, your benefits are not taxed. Even if you exceed these thresholds, only a portion of your benefits may be taxable.
Retirement Account Contribution Limits and Withdrawals
If you’re still working at 50+, you can contribute more to retirement accounts:
- IRA catch-up contributions: Extra $1,000 per year if you’re 50 or older
- 401(k) catch-up contributions: Extra $7,500
Required Minimum Distributions (RMDs) start at age 73, but charitable giving via Qualified Charitable Distributions (QCDs) can help reduce your taxable income.
Property Tax Relief Programs
Many states offer senior-specific property tax relief or deferral programs. These include:
- Property tax “circuit breakers”
- Homestead exemptions
- Freeze programs for seniors with limited income
Check your state or local tax authority’s website for senior-specific applications.
Medical and Long-Term Care Deductions
Seniors often spend more on healthcare, and some of those costs are deductible:
- If you itemize, medical expenses over 7.5% of your adjusted gross income can be deducted.
- Includes premiums, copays, dental, vision, and long-term care services.
Long-term care insurance premiums are also deductible, with age-based limits.
Filing Tips for Seniors
- Free File Options: IRS and AARP offer free tax prep help for seniors.
- Use IRS Form 1040-SR: A simplified version of the standard 1040, designed for seniors.
- Update Your Records: Ensure marital status, dependent info, and income are accurately reported.
Final Thoughts
Every dollar saved counts in retirement. By understanding and leveraging the tax benefits designed for seniors, you can make the most of your income and preserve more of your financial security.
Always consult a qualified tax advisor to ensure eligibility and accuracy when filing.
Published June 2024 • Updated August 2025
Reviewed by Debbie Marcello, Founder & CEO of Happier at Home
This content is for informational use only and does not replace medical advice.
