Could you unlock $141,900 in tax-free retirement income next year?
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Retirement is meant to be a time to enjoy the rewards of years of work, not a constant worry about taxes.
Yet many older Americans may be leaving money on the table without realizing it.
Hidden in the tax code is a little-used strategy that could help retirees keep more of their hard-earned savings.
In fact, with the right planning, some couples may be able to receive up to $141,900 completely tax-free in 2025.
The surprising part? Most people have never even heard of it.
What is tax gain harvesting?
Many are familiar with tax-loss harvesting—selling investments at a loss to offset taxable gains.
Tax gain harvesting flips that idea on its head.
Retirees can sell investments at a profit when their income is low enough that the IRS charges 0% tax on long-term capital gains.
For 2025, single filers can earn up to $48,350 in taxable income without owing capital gains taxes.
Married couples filing jointly can earn up to $96,700—and that’s before deductions.
Also read: 9 tax breaks for people over 50 you might be missing
How retirees could reach $141,900 tax-free
When you factor in the standard deduction ($30,000 in 2025) plus bonus deductions for adults over 65 ($18,200 for couples), the math adds up quickly.
Altogether, a married couple could realize up to $141,900 in gains tax-free.
It’s a powerful way to reset the “cost basis” of investments—helping reduce future tax bills for both retirees and their heirs.
An example in action
Take James and Julia, both 66, who own a brokerage account worth $283,800.
Their original investment was $141,900.
In 2025, they sell the account, realizing $141,900 in gains.
Thanks to the 0% capital gains rate and their deductions, the entire amount is tax-free.
Instead of worrying about taxes, they get to keep every dollar.
Also read: Social Security at 90: Trump administration proposals could reshape retirement for millions
Why more retirees don’t use this strategy
Despite its benefits, tax gain harvesting is rarely discussed.
For one, it feels counterintuitive—most people are taught to delay paying taxes for as long as possible.
It’s also complicated: income from Social Security, pensions, or part-time work can change the calculations.
And gains may affect Medicare premiums or Social Security taxation, making planning essential.
Also read: What the proposed "senior bonus" tax break could mean for your retirement
Things to watch for
Before making moves, retirees should keep a few key points in mind:
This strategy can be very effective, but it’s not one-size-fits-all—which is why many experts recommend consulting a financial advisor first.
Also read: Five free or low-cost retirement perks you may be overlooking
Steps to take now
Why it matters
Every tax-free dollar you keep is one less you need to withdraw from your savings.
Beyond boosting retirement income, this strategy resets investment values for the future and creates flexibility for financial planning.
For retirees, it can mean more money for travel, healthcare, or simply peace of mind.
Read next: Looking to boost your retirement income? These 5 side gigs can help
Have you heard of tax gain harvesting before? Would you consider trying it—or do you already use other strategies to minimize taxes in retirement? Share your experience and questions in the comments below so our community can learn together.
Yet many older Americans may be leaving money on the table without realizing it.
Hidden in the tax code is a little-used strategy that could help retirees keep more of their hard-earned savings.
In fact, with the right planning, some couples may be able to receive up to $141,900 completely tax-free in 2025.
The surprising part? Most people have never even heard of it.
With careful planning, retirees may be able to harvest gains and unlock tax-free income in 2025. Image Source: Pexels / Photo By: Kaboompics.com.
What is tax gain harvesting?
Many are familiar with tax-loss harvesting—selling investments at a loss to offset taxable gains.
Tax gain harvesting flips that idea on its head.
Retirees can sell investments at a profit when their income is low enough that the IRS charges 0% tax on long-term capital gains.
For 2025, single filers can earn up to $48,350 in taxable income without owing capital gains taxes.
Married couples filing jointly can earn up to $96,700—and that’s before deductions.
Also read: 9 tax breaks for people over 50 you might be missing
How retirees could reach $141,900 tax-free
When you factor in the standard deduction ($30,000 in 2025) plus bonus deductions for adults over 65 ($18,200 for couples), the math adds up quickly.
Altogether, a married couple could realize up to $141,900 in gains tax-free.
It’s a powerful way to reset the “cost basis” of investments—helping reduce future tax bills for both retirees and their heirs.
An example in action
Take James and Julia, both 66, who own a brokerage account worth $283,800.
Their original investment was $141,900.
In 2025, they sell the account, realizing $141,900 in gains.
Thanks to the 0% capital gains rate and their deductions, the entire amount is tax-free.
Instead of worrying about taxes, they get to keep every dollar.
Also read: Social Security at 90: Trump administration proposals could reshape retirement for millions
Why more retirees don’t use this strategy
Despite its benefits, tax gain harvesting is rarely discussed.
For one, it feels counterintuitive—most people are taught to delay paying taxes for as long as possible.
It’s also complicated: income from Social Security, pensions, or part-time work can change the calculations.
And gains may affect Medicare premiums or Social Security taxation, making planning essential.
Also read: What the proposed "senior bonus" tax break could mean for your retirement
Things to watch for
Before making moves, retirees should keep a few key points in mind:
- Large gains can increase your modified adjusted gross income (MAGI), impacting Medicare and Social Security taxes.
- Deductions phase out at certain income levels.
- State taxes may still apply, depending on where you live.
- Extra income from jobs or rentals can complicate the numbers.
This strategy can be very effective, but it’s not one-size-fits-all—which is why many experts recommend consulting a financial advisor first.
Also read: Five free or low-cost retirement perks you may be overlooking
Steps to take now
- Review all your expected income for 2025.
- Identify investments in taxable accounts with long-term gains.
- Factor in your standard and age-related deductions.
- Run the numbers—or ask an advisor to help.
- Make a plan before year-end to take advantage of the 0% capital gains bracket.
Why it matters
Every tax-free dollar you keep is one less you need to withdraw from your savings.
Beyond boosting retirement income, this strategy resets investment values for the future and creates flexibility for financial planning.
For retirees, it can mean more money for travel, healthcare, or simply peace of mind.
Read next: Looking to boost your retirement income? These 5 side gigs can help
Have you heard of tax gain harvesting before? Would you consider trying it—or do you already use other strategies to minimize taxes in retirement? Share your experience and questions in the comments below so our community can learn together.
