65 or Older? 5 Tax Strategies to Protect Your Retirement Income
From leveraging the new senior bonus deduction to timing Roth conversions, smart tax planning is key this year.
Turning 65 can come with meaningful tax advantages. That's especially true now, given changes under the Trump/GOP tax bill enacted in July of last year.
From a larger standard deduction and new bonus deduction for older adults to lesser-known breaks tied to retirement income or age, several provisions can help older adults lower their federal tax bill.
To get you started, here are five tax strategies that can help you keep more of your hard-earned retirement income.
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Key tax savings for seniors over 65
1. Claiming the Extra Standard Deduction and Senior Bonus Deduction
Taxpayers age 65 and older are eligible for an extra standard deduction on their federal return on top of the regular standard deduction amounts.
For 2025 federal returns (being filed now in this 2026 tax season), these deductions include:
Deduction | Single | Married Filing Jointly | Notes |
Standard Deduction | $15,750 | $31,500 | Base standard deduction for 2025 |
Extra Standard Deduction (65+) | $2,000 | $1,600 per spouse | An additional amount added to the standard deduction if age 65 or older. Higher amounts for eligible blind taxpayers. |
Senior Bonus Deduction (2025–2028) | Up to $6,000 | Up to $12,000 | Phase-outs start at MAGI $75,000 (single) / $150,000 (joint); can be claimed even if itemizing; requires SSN |
The senior bonus deduction is different than the extra standard deduction for older adults. It is temporary and requires a valid Social Security number (SSN), but it can be claimed even if you itemize deductions, subject to income phase-outs.
Keep in mind: Claiming both the extra standard deduction and the senior bonus deduction can reduce your taxable income.
Learn More: How the $6,000 Senior Bonus Deduction Works
2. Deducting higher medical expenses
As retirees transition into retirement, they often face rising medical expenses.
To help manage these costs, the IRS offers a tax benefit for those who itemize deductions, allowing them to subtract eligible medical expenses that exceed 7.5% of their adjusted gross income (AGI).
Eligible expenses include:
- Medicare Part B and Part D premiums
- Medicare Advantage or supplemental insurance
- Long-term care insurance (deduction limited by age, see IRS Pub 502)
- Prescription drugs, doctor visits and hospital care
- Transportation for medical care
Keep in mind: Tracking all eligible medical costs throughout the year can help ensure you claim all available deductions and potentially lower your tax burden.
Learn More: What Medical Expenses Are Tax Deductible?
3. Making Qualified Charitable Distributions (QCDs)
At 70½ and older, you can donate up to $108,000 per year (for the 2025 tax year, $111,000 for the 2026 tax year) from a traditional IRA directly to a qualified charity through a Qualified Charitable Distribution (QCD). (The QCD limit is indexed for inflation.)
Benefits:
- Counts toward your Required Minimum Distribution (RMD)
- The amount of the QCD is excluded from taxable income
Keep in mind: QCDs must go directly from your IRA to the charity to qualify. Using QCDs can satisfy your RMD while keeping funds out of taxable income, which might also help reduce Medicare premiums (IRMAA surcharges) and taxes on your Social Security benefits.
Learn More: How Qualified Charitable Distributions Work
4. Managing Social Security taxes carefully
Social Security benefits may be taxable depending on your total income, which the IRS measures using provisional income. Depending on your provisional income, up to 85% of your Social Security benefits may be taxable.
"Provisional income" is calculated as: Adjusted Gross Income (AGI) + tax-exempt interest + ½ of your Social Security benefits
Where AGI includes:
- Wages, pensions, and traditional IRA/401(k) withdrawals
- Taxable investment income (interest, dividends, capital gains)
Filing Status | Lower Threshold | Upper Threshold | Notes |
Single | $25,000 | $34,000 | Determines the taxable portion of Social Security benefits |
Married Filing Jointly | $32,000 | $44,000 | Thresholds for combined provisional income |
Keep in mind: Spreading taxable withdrawals from retirement accounts across multiple years or using Roth IRA withdrawals strategically can help minimize how much of your Social Security benefits are taxed, preserving more of your retirement income. Filing separately can trigger higher taxable amounts, so consider your filing status carefully.
Learn more: 6 Things to Know About Taxes on Social Security
5. Converting traditional IRA funds to a Roth IRA strategically
Converting part of a traditional IRA to a Roth IRA in lower-income years can provide long-term tax benefits:
- Pay taxes on the converted amount in the year of conversion
- Future qualified withdrawals from the Roth IRA are generally tax-free
- Reduces future Required Minimum Distributions (RMDs)
Keep in mind: Partial Roth conversions in years when income is lower can spread taxable income over time and potentially reduce future tax liabilities. Roth conversions can temporarily increase provisional income and affect taxes on Social Security in the conversion year.
Learn more: Reasons to Convert Your IRA to a Roth
Bonus Tip: Reviewing state tax breaks for seniors
Many states offer retirement-specific tax relief, like:
- Pension or retirement income exclusions
- Property tax reductions or freezes
- Higher eligibility thresholds for credits for older adults
Keep in mind: State-level tax relief is often overlooked by some taxpayers but can help save more than federal deductions alone. It's important to check eligibility or consult a local tax professional to claim all the tax benefits you're entitlted to.
Learn more: Retirement Taxes: How All 50 States Tax Retirees
Retirement tax planning: Bottom line
Being 65 or older opens the door to a variety of deductions, credits, and planning strategies that can reduce your taxes — but every retiree’s situation is different.
How much you can save depends on factors like your retirement income, Social Security benefits, state tax rules, and whether you itemize deductions.
Keep in mind: These tips can put more money back in your pocket, but other considerations, like Medicare premiums, investment income, and state-level tax breaks, can affect your overall tax picture.
In any case, strategic planning can help you maximize available tax savings opportunities while avoiding surprises. Consult a tax professional to tailor strategies to your circumstances.
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