2026 Tax Guide for Seniors: Extra Deductions After Age 65
The tax code contains a number of provisions specifically designed to benefit older Americans. For taxpayers who are 65 or older as of the end of 2025, the 2026 filing season brings access to enhanced standard deductions, more favorable medical expense treatment, and other provisions that can significantly reduce tax liability. This guide explains the key tax advantages available to seniors and how to ensure you are taking full advantage of them.[1][2]
Enhanced Standard Deduction for Age 65 and Older
One of the most straightforward benefits for older taxpayers is an additional standard deduction amount that is layered on top of the regular standard deduction. For the 2025 tax year, taxpayers who are 65 or older receive an additional deduction of:[1][2]
$1,600 per qualifying person if married (whether filing jointly or separately)
$2,000 per qualifying person if single or head of household
This means a single filer who is 65 or older has a standard deduction of $17,000 ($15,000 base plus $2,000 additional). A married couple who are both 65 or older filing jointly have a standard deduction of $33,200 ($30,000 plus $1,600 for each spouse). If only one spouse is 65 or older, the couple's standard deduction is $31,600.[1]
The same additional deduction applies if a taxpayer is legally blind, and it can be combined with the age-based additional deduction. A single filer who is both 65 or older and blind receives an additional $4,000 on top of the base standard deduction.[2]
Medical Expense Deduction
For taxpayers who itemize, unreimbursed medical expenses that exceed 7.5 percent of adjusted gross income are deductible. This threshold applies to all taxpayers regardless of age for 2025, but older adults typically benefit most from this deduction because healthcare costs tend to increase with age.[1][3]
Deductible medical expenses include:[1][2]
Premiums for Medicare Parts B and D
Prescription drug costs not covered by insurance
Doctor, dentist, and hospital visits
Long-term care insurance premiums up to age-based limits
Assisted living and nursing home costs if the primary purpose is medical care
Hearing aids, eyeglasses, and other medical equipment
Transportation to medical appointments
Social Security Benefits and Taxation
Up to 85 percent of Social Security benefits may be taxable depending on your combined income, which is defined as adjusted gross income plus nontaxable interest plus half of your Social Security benefits. The thresholds are:[1][2]
Combined income below $25,000 (single) or $32,000 (joint): No Social Security benefits are taxable
Combined income of $25,000 to $34,000 (single) or $32,000 to $44,000 (joint): Up to 50 percent of benefits may be taxable
Combined income above $34,000 (single) or $44,000 (joint): Up to 85 percent of benefits may be taxable
These thresholds are not indexed for inflation and have not changed since they were established, meaning more retirees become subject to Social Security taxation over time as benefit amounts increase.[3]
Required Minimum Distributions
Taxpayers who have reached age 73 must take required minimum distributions from traditional IRAs, SEP-IRAs, and most 401(k) plans. These distributions are generally taxable as ordinary income. Failing to take an RMD results in a 25 percent excise tax on the amount that should have been withdrawn, though the penalty can be reduced to 10 percent if corrected promptly.[1][2]
Qualified charitable distributions allow IRA owners who are 70 and a half or older to transfer up to $105,000 directly from an IRA to a qualified charity. QCDs count toward your RMD, are excluded from taxable income, and do not require itemizing to receive the tax benefit.[1]
Credit for the Elderly or Disabled
Lower-income seniors may qualify for the Credit for the Elderly or Disabled, which provides a credit of 15 percent on a specified amount based on filing status. The credit is non-refundable and phases out at relatively modest income levels. Single filers with AGI above $17,500 or nontaxable Social Security above $5,000 cannot claim this credit.[2][3]
Sale of a Primary Residence
Homeowners who sell their primary residence can exclude up to $250,000 in capital gains from taxable income ($500,000 if married filing jointly), provided they owned and lived in the home for at least two of the five years preceding the sale. This exclusion benefits many retirees who are downsizing, as home values in many areas have appreciated significantly in recent years.[1][2]
Conclusion
Older taxpayers benefit from several meaningful tax advantages, including an enhanced standard deduction, favorable medical expense treatment, and strategies like qualified charitable distributions that can reduce RMD income. Taking full advantage of these provisions requires understanding which ones apply to your situation and ensuring your return accurately reflects all available benefits. A tax professional who works with retirees can help identify additional planning opportunities specific to your income and asset picture.[1][2][3]
Sources
[1] IRS Publication 554, Tax Guide for Seniors, IRS.gov
[2] IRS, Social Security and Equivalent Railroad Retirement Benefits, IRS.gov
[3] AARP, Tax Advantages for People Over 50, aarp.org
