For many retirees, financial peace of mind means stretching every dollar. But what if you could uncover hidden tax perks that most people overlook?
It turns out, the U.S. tax code holds some surprising benefits specifically designed for older adults — yet a shocking number of retirees never take advantage of them.
Retirees Are Missing Out on These Little-Known Tax Perks
1. Standard Deduction Increases After Age 65
Once you turn 65, your standard deduction automatically increases. For joint filers, that’s an extra $1,550 per person. It may not sound like much at first glance, but it can make a big difference in your taxable income, especially if you're living off Social Security and savings.
2. Social Security Might Not Be Taxed
Depending on your total income, you may not owe taxes on your Social Security benefits at all. Many retirees assume all benefits are taxed — not true. If Social Security is your primary income source, you might legally pay $0 in federal tax.
3. Medical Expense Deductions
Healthcare costs can skyrocket with age. The IRS allows you to deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income. That includes things like dental work, long-term care, and even certain home improvements made for medical reasons.
4. Retirement Savings Credit (Yes, Even Now)
Still making contributions to a retirement account? You could qualify for the Saver’s Credit — even in retirement. If you’re in the lower income bracket and contributing to an IRA or 401(k), the IRS might give you a credit of up to $1,000.
5. Property Tax Breaks for Seniors
Many states offer property tax exemptions or reductions for residents over 65. These can be substantial and are often underutilized simply because retirees don’t know to ask. A quick phone call to your county tax office could save you hundreds each year.
Why This Matters Now
With inflation squeezing retirement budgets, finding overlooked ways to reduce your tax bill could be the edge you need to stay financially secure.
The best part? These aren’t loopholes — they’re legitimate, IRS-approved benefits. You just have to know where to look.