9 tax breaks for people over 50 you might be missing
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Hitting age 50 comes with more than just life experience — it also unlocks valuable tax benefits that can help you keep more of your hard-earned money.
The challenge? Many of these perks aren’t widely publicized, which means thousands of Americans miss out each year simply because they don’t know they exist.
From boosting your retirement savings to lowering property taxes, the IRS offers a range of ways for older adults to reduce their tax bills.
But taking advantage of these benefits often means planning ahead and understanding the eligibility rules.
Let’s take a closer look at nine of the most useful — and often overlooked — tax breaks available for people over 50.
1. Catch-up contributions to retirement accounts
Once you turn 50, you can contribute extra to your retirement savings, which can lower your taxable income.
In 2025, employees with a 401(k), 403(b), or similar plan can add an extra $7,500 beyond the standard contribution limit, for a total of up to $31,000.
SIMPLE 401(k) plans allow a $3,500 catch-up if you’re age 50–60, and $5,250 if you’re 60–63.
IRAs also let you add an extra $1,000 once you reach 50.
Always check with a tax professional to confirm the latest contribution rules, especially after updates like the Secure Act 2.0.
2. The Saver’s Credit
If your income is moderate and you’re saving for retirement, you may qualify for the Saver’s Credit, which directly reduces your tax bill.
For individuals, it can be worth up to $2,000, or $4,000 for couples filing jointly.
The percentage you receive (10% to 50% of contributions) depends on your income level, and catch-up contributions also count toward this credit.
Also read: What the proposed "senior bonus" tax break could mean for your retirement
3. Extra Health Savings Account (HSA) contributions and medical deductions
At age 55, you can put an additional $1,000 into your HSA — up to $5,300 for individuals and $9,550 for families in 2025.
If you’re on Medicare, premiums may be deductible as a medical expense if you itemize, as long as your total medical costs exceed 7.5% of your adjusted gross income.
This can help offset rising healthcare expenses.
4. Free tax preparation services
The IRS’s Tax Counseling for the Elderly (TCE) program offers free tax help for people 60 and older, often provided by volunteers who understand retirement-specific tax issues.
AARP’s Tax-Aide program is another option, operating at community centers and libraries nationwide.
Because availability can vary each year, it’s best to check early in tax season.
Also read: Could a $4,000 tax break be coming for Social Security recipients?
5. Additional standard deduction for seniors
Once you or your spouse turns 65, you get an increase in your standard deduction.
For 2025, that’s an extra $1,600 per person for joint filers and $2,000 for single filers.
This can reduce your taxable income without needing to itemize deductions.
6. Higher income thresholds before you must file
Older adults may not need to file taxes unless they meet higher income thresholds.
In 2024, a single filer over 65 only had to file if earning $16,550 or more, while couples over 65 didn’t have to file unless earning $32,300.
Rules change annually, so verify before deciding not to file.
Also read: Household savings ahead: Florida lifts sales tax on several staple items
7. The Tax Credit for the Elderly or Disabled
If you’re 65 or older (or permanently disabled) with a low income, you could be eligible for a tax credit between $3,750 and $7,500.
The income requirements are strict, and certain non-taxable income, like Social Security, can reduce eligibility.
Still, for those who qualify, it can make a noticeable difference.
8. Qualified charitable distributions (QCDs)
Once you turn 73, the IRS requires you to take minimum distributions from traditional IRAs.
You can donate up to $108,000 — or $216,000 for couples — directly to a charity instead.
This donation won’t count as taxable income, making it a tax-smart way to give back.
QCDs only apply to traditional IRAs, not Roth IRAs or 401(k)s.
9. Property tax breaks for seniors
Many states and local governments offer property tax reductions or exemptions for seniors, often starting at age 65.
Texas, for example, provides a $10,000 homestead exemption, while New York may reduce property tax by up to 50%—with a proposal to increase that to 65% in 2025.
Income limits and application processes differ, so contact your local tax office to learn the rules.
Also read: A new proposal could bring major changes to property tax bills for older homeowners
Bonus: Other useful tax reminders
Many tax advantages require you to act before the end of the year, so plan ahead.
Keep documentation for medical expenses, charitable donations, and property tax payments.
And because tax rules can change frequently, consulting a professional can help ensure you maximize your benefits.
Read next: Big changes in your taxes: Discover the 9 states where your paycheck will get bigger starting January 1
Have you claimed any of these tax breaks before, or do you plan to use them this year?
The challenge? Many of these perks aren’t widely publicized, which means thousands of Americans miss out each year simply because they don’t know they exist.
From boosting your retirement savings to lowering property taxes, the IRS offers a range of ways for older adults to reduce their tax bills.
But taking advantage of these benefits often means planning ahead and understanding the eligibility rules.
Let’s take a closer look at nine of the most useful — and often overlooked — tax breaks available for people over 50.
Knowing which tax benefits you qualify for after 50 can help you save more and keep your retirement plans on track. Image Source: Pexels / Nataliya Vaitkevich.
1. Catch-up contributions to retirement accounts
Once you turn 50, you can contribute extra to your retirement savings, which can lower your taxable income.
In 2025, employees with a 401(k), 403(b), or similar plan can add an extra $7,500 beyond the standard contribution limit, for a total of up to $31,000.
SIMPLE 401(k) plans allow a $3,500 catch-up if you’re age 50–60, and $5,250 if you’re 60–63.
IRAs also let you add an extra $1,000 once you reach 50.
Always check with a tax professional to confirm the latest contribution rules, especially after updates like the Secure Act 2.0.
2. The Saver’s Credit
If your income is moderate and you’re saving for retirement, you may qualify for the Saver’s Credit, which directly reduces your tax bill.
For individuals, it can be worth up to $2,000, or $4,000 for couples filing jointly.
The percentage you receive (10% to 50% of contributions) depends on your income level, and catch-up contributions also count toward this credit.
Also read: What the proposed "senior bonus" tax break could mean for your retirement
3. Extra Health Savings Account (HSA) contributions and medical deductions
At age 55, you can put an additional $1,000 into your HSA — up to $5,300 for individuals and $9,550 for families in 2025.
If you’re on Medicare, premiums may be deductible as a medical expense if you itemize, as long as your total medical costs exceed 7.5% of your adjusted gross income.
This can help offset rising healthcare expenses.
4. Free tax preparation services
The IRS’s Tax Counseling for the Elderly (TCE) program offers free tax help for people 60 and older, often provided by volunteers who understand retirement-specific tax issues.
AARP’s Tax-Aide program is another option, operating at community centers and libraries nationwide.
Because availability can vary each year, it’s best to check early in tax season.
Also read: Could a $4,000 tax break be coming for Social Security recipients?
5. Additional standard deduction for seniors
Once you or your spouse turns 65, you get an increase in your standard deduction.
For 2025, that’s an extra $1,600 per person for joint filers and $2,000 for single filers.
This can reduce your taxable income without needing to itemize deductions.
6. Higher income thresholds before you must file
Older adults may not need to file taxes unless they meet higher income thresholds.
In 2024, a single filer over 65 only had to file if earning $16,550 or more, while couples over 65 didn’t have to file unless earning $32,300.
Rules change annually, so verify before deciding not to file.
Also read: Household savings ahead: Florida lifts sales tax on several staple items
7. The Tax Credit for the Elderly or Disabled
If you’re 65 or older (or permanently disabled) with a low income, you could be eligible for a tax credit between $3,750 and $7,500.
The income requirements are strict, and certain non-taxable income, like Social Security, can reduce eligibility.
Still, for those who qualify, it can make a noticeable difference.
8. Qualified charitable distributions (QCDs)
Once you turn 73, the IRS requires you to take minimum distributions from traditional IRAs.
You can donate up to $108,000 — or $216,000 for couples — directly to a charity instead.
This donation won’t count as taxable income, making it a tax-smart way to give back.
QCDs only apply to traditional IRAs, not Roth IRAs or 401(k)s.
9. Property tax breaks for seniors
Many states and local governments offer property tax reductions or exemptions for seniors, often starting at age 65.
Texas, for example, provides a $10,000 homestead exemption, while New York may reduce property tax by up to 50%—with a proposal to increase that to 65% in 2025.
Income limits and application processes differ, so contact your local tax office to learn the rules.
Also read: A new proposal could bring major changes to property tax bills for older homeowners
Bonus: Other useful tax reminders
- Most states don’t tax Social Security benefits, though a few do, often with exemptions for lower-income residents.
- You can exclude up to $250,000 in capital gains from selling your primary home ($500,000 for couples), regardless of age.
- The annual gift tax limit for 2025 is $19,000 per recipient, or $38,000 for married couples.
- A temporary $6,000 deduction for seniors 65+ is available under the 2025 tax bill for those earning under $75,000 ($150,000 for couples), but it’s set to expire in 2028.
Many tax advantages require you to act before the end of the year, so plan ahead.
Keep documentation for medical expenses, charitable donations, and property tax payments.
And because tax rules can change frequently, consulting a professional can help ensure you maximize your benefits.
Read next: Big changes in your taxes: Discover the 9 states where your paycheck will get bigger starting January 1
Have you claimed any of these tax breaks before, or do you plan to use them this year?
