Tax Breaks Overlooked by New Retirees
The IRS offers several advantages to newly retired taxpayers. Don't miss out.

So you've put enough aside to enjoy a comfortable retirement. Good for you! But you're not off the hook just yet, at least not if you want to make sure you don't pay more taxes than you need to. Now that you're no longer working, your tax situation is different, too.
Here are three of the most overlooked tax breaks for the newly retired.
Bigger Standard Deduction
When you turn 65, the IRS offers a gift in the form of a bigger standard deduction. For 2015, for example, it's $7,850 for a 65-year-old single, versus the standard deduction of $6,300 for younger singles. The extra $1,550 will make it more likely you’ll take the standard deduction rather than itemizing and, if you do, the additional amount will save you almost $400 if you’re in the 25% tax bracket. Couples in which one or both spouses are age 65 or older also get bigger standard deductions than younger taxpayers.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Easier Medical Deductions
It also gets easier to deduct medical expenses. Those 65 and older who itemize these get a money-saving deduction to the extent their medical bills exceed 7.5% of adjusted gross income. For younger taxpayers, the income threshold is 10%.
Spousal IRA Contributions
And remember that retirement doesn't necessarily mean an end to the chance to shovel money into an IRA and enjoy the tax breaks that come along with it. If you’re married and your spouse is still working, he or she can contribute up to $6,500 a year to an IRA that you own, assuming you’re at least 50 years old. If you use a traditional IRA, spousal contributions are allowed up to the year you reach age 70 and a half. If you use a Roth IRA, there is no age limit. As long as your spouse has enough earned income to fund the contribution to your account -- and any deposits to his or her own -- this tax shelter’s doors remain open to you.
Check out even more overlooked tax breaks for the newly retired.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

In his former role as Senior Online Editor, David edited and wrote a wide range of content for Kiplinger.com. With more than 20 years of experience with Kiplinger, David worked on numerous Kiplinger publications, including The Kiplinger Letter and Kiplinger’s Personal Finance magazine. He co-hosted Your Money's Worth, Kiplinger's podcast and helped develop the Economic Forecasts feature.
-
Prime Day Savings? Watch Out for Sales Tax and Tariffs That Can Increase Your Total Price
Sales Tax Amazon Prime Day 2025 can offer some opportunities to save, but this year, taxes and tariffs matter.
-
TSA Expands PreCheck Access for Military Members, Families and Veterans
Enhanced "Serve with Honor, Travel with Ease" initiative lowers barriers to expedited screening for service members and their loved ones.
-
Elon Musk and Most Taxpayers Don't Like What's in Trump's 'Big Beautiful Bill'
Tax Policy President Trump is betting big on his newest tax cuts, signed into law on July 4. But not everyone is on board.
-
2025 SALT Cap Could Hurt Top 'Hidden Home Cost'
Tax Deductions The GOP tax bill could make hidden homeowner costs worse for you. Here’s how.
-
No Social Security Tax Changes in Trump’s 'Big Bill'? What Retirees Need to Know
Tax Policy Eliminating taxes on Social Security benefits is missing from President Trump’s tax overhaul. Here’s why and what an alternative offering could mean for retirement taxes.
-
Five Surprising GOP Senate Bill Tax Changes to Know
Tax Policy Senate Republicans proposed tax changes for Trump’s ‘one big, beautiful bill.” Some provisions have stirred debate.
-
$6,000 'Bonus' Tax Deduction Approved for Those Age 65 and Older
Tax Reform Trump’s ‘big bill’ contains a larger 2025 bonus tax deduction for older adults. How will it work?
-
Don't Miss These Four Tax Breaks for Americans Living Abroad in 2025
International Tax U.S. expats can reduce their tax burden by taking advantage of a handful of tax credits and deductions.
-
Summer Backyard Ideas With Added Tax Benefits for 2025
Tax Tips Find out how these summer 2025 home projects can help you save on taxes next year.
-
Why Your California Utility Bill Could Increase Under Trump's Tax Plan
State Tax Energy bills in the Golden State may shock you if Republican lawmakers in Congress remove certain energy tax credits through Trump's 'big, beautiful bill.'