Hitting the big 65 isn’t just about blowing out candles; it’s a milestone that brings a surprising perk: Uncle Sam offers you some extra breaks on your taxes! It’s like the IRS is giving you a little nod, acknowledging you’ve reached a new chapter in your lifestyle. Suddenly, those tax forms don’t seem quite so scary, and you might find yourself with a bit more money in your pocket.
As you get older, the tax code starts to work a bit more in your favor, providing opportunities to save. These aren’t hidden secrets; they’re legitimate ways to reduce your taxable income or boost your deductions, specifically designed to assist those nearing retirement. So, grab a cup of coffee, and let’s explore these 13 clever tax advantages you can claim once you reach that milestone, offering some excellent inspiration for your financial plans.
Health Savings Account (HSA) Benefits
Suppose you’re still working and enrolled in a high-deductible health plan. In that case, your HSA offers triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Once you turn 55, you can contribute an additional “catch-up” contribution to your HSA. For 2025, this catch-up contribution is $1,000, further boosting your tax-advantaged health savings.
Catch-Up Contributions To Retirement Accounts
Once you hit age 50 or over, the IRS allows you to contribute extra money to your 401(k)s, 403(b)s, and IRAs beyond the standard limits. This is a fantastic way to supercharge your retirement savings, especially if you feel you’re playing catch-up. For 2025, the 401(k) catch-up contribution is $7,500, and for IRAs, it’s $1,000, adding to your financial growth. This allows for increased productivity in your savings efforts.
Higher Standard Deduction For Seniors
If you don’t itemize deductions, you get an additional standard deduction amount. This means less of your income is subject to tax, leaving you with more of your hard-earned money. This extra chunk of non-taxable income is a straight win for your finances.
Tax Credit For The Elderly Or Disabled
This credit can be a bit tricky, but it can be valuable for individuals who are 65 or older (or retired due to permanent and total disability) and have a lower income. It can reduce your tax bill dollar for dollar, rather than just reducing your taxable income. This is a direct boost to your money and financial well-being. As of 2024, the maximum credit ranges from $3,750 to $7,500, but income limitations apply, making it a targeted benefit.
Medical Expense Deductions
As you age, health expenses can sometimes become a bigger part of your budget. If your out-of-pocket medical costs exceed a certain percentage of your adjusted gross income (AGI), you can deduct the amount over that threshold. This is a significant break, especially if you have chronic conditions or face major medical procedures, easing the burden on your finances.
Exclusion Of Gain From Sale Of Primary Residence
If you sell your main home, you can exclude up to $250,000 of the gain from your taxable income (or $500,000 if you are married and filing jointly). This is a huge tax break that can free up significant money for your next chapter, whether it’s downsizing or relocating for travel.
Senior Real Estate Tax Breaks
Many states and localities offer property tax breaks to seniors, often based on income, age, or disability status. These can come in the form of homestead exemptions, deferrals, or direct credits, providing valuable relief on your home decor expenses and overall housing costs. Check with your local tax assessor’s office; these benefits can save you a bundle on your lifestyle expenses.
Charitable Contributions
If you’re still itemizing deductions, your charitable contributions can reduce your taxable income. Many older adults find satisfaction in giving back, and the IRS rewards this generosity. If you’re 70½ or older, you can even make qualified charitable distributions (QCDs) directly from your IRA to a charity, which can satisfy your required minimum distribution (RMD) and is tax-free.
Tax Benefits For Long-Term Care Insurance
Premiums paid for qualified long-term care insurance can be deductible as medical expenses, up to certain age-based limits. This is a crucial health benefit, as long-term care costs can be significant later in life. Having this coverage helps protect your finances and ensures you can receive necessary care without depleting your savings.
Credit For Qualified Electric Vehicle (EV) Purchases
If you’re considering buying a new or used electric vehicle, you might qualify for a tax credit. This is available to individuals and can be a significant money saver, not just for the environment, but also for your wallet. While not strictly age-dependent, being over 50 often coincides with a time when people are considering new vehicle purchases that align with their lifestyle.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
How Total Beginners Are Building Wealth Fast in 2025—No Experience Needed
How Total Beginners Are Building Wealth Fast in 2025
I used to think investing was something you did after you were already rich. Like, you needed $10,000 in a suit pocket and a guy named Chad at some fancy firm who knew how to “diversify your portfolio.” Meanwhile, I was just trying to figure out how to stretch $43 to payday.
But a lot has changed. And fast. In 2025, building wealth doesn’t require a finance degree—or even a lot of money. The tools are simpler. The entry points are lower. And believe it or not, total beginners are stacking wins just by starting small and staying consistent.
Click here and let’s break down how.
5 Easy Steps to Change Any Habit
5 Easy Steps to Change Any Habit
We all click on them with the hope that just THIS time the secret to changing a bad habit or adopting a healthy one will be revealed and we’ll finally be able to stick to that diet, stop that one or ten things that might in the moment make us feel temporarily good but really just make us fat, unhealthy, sad, mad or just frustrated with ourselves.
