5 Tax Breaks Many Seniors Miss

Turning 65 comes with a quiet bonus: the tax code starts working a little more in your favor. The trouble is, these benefits don’t announce themselves — and every year people leave money on the table simply because no one told them. Here are five of the most commonly missed, and what to look for.

1. A larger standard deduction

Once you turn 65, you qualify for a higher standard deduction than younger taxpayers. It applies automatically when you take the standard deduction, but it’s worth making sure your return reflects your age — and your spouse’s, if they’re 65 or older too. For many seniors, this single adjustment lowers the tax bill with no extra paperwork at all.

2. The Credit for the Elderly or Disabled

This is one of the most overlooked credits on the books. If you’re 65 or older — or younger and retired on permanent and total disability — and your income falls within the limits, you may be able to claim it. It’s filed on Schedule R, and because it’s a credit rather than a deduction, it reduces your tax dollar-for-dollar.

3. Out-of-pocket medical and dental costs

Medical expenses add up quickly in retirement, and more of them count than people expect — doctor and dentist visits, prescriptions, hearing aids, dentures, eyeglasses, certain insurance premiums, and even the mileage you drive to appointments. If you itemize, the portion of these costs above 7.5% of your income can be deductible.

4. Giving to charity straight from your IRA

If you’ve reached the age where you must take required minimum distributions from a retirement account, there’s a smart way to give: a qualified charitable distribution. By sending money directly from your IRA to a charity, that amount can stay off your taxable income — which can lower your taxes even if you don’t itemize.

5. The Earned Income Tax Credit

Still working part-time? Don’t assume the EITC is only for young families. Lower-income workers, including some seniors, can qualify — and it’s one of the most valuable refunds available. Many eligible people never claim it simply because they don’t realize they qualify.

The hard part isn’t qualifying for these breaks — it’s knowing they exist and claiming them correctly. That’s exactly what we do. Our free tax help makes sure you keep every dollar you’ve earned.