Like a pair of stiff jeans, taxes become more forgiving over time. That’s because Americans become eligible for more and more deductions, tax credits and exemptions as they approach retirement age. The best breaks are available to folks over 65, but you could benefit from lower taxes as soon as you turn 50.
However, lower taxes don’t translate into easier taxes. Taking full advantage of these breaks requires some planning before the current tax year is over — like increasing your retirement account contributions or applying for state property tax exemptions. This roundup includes some of the most widely available tax breaks, yet it’s not exhaustive: You may be able to qualify for additional discounts through your state and local governments.
1. Deductible retirement account contributions
Catch-up contributions are additional funds that anyone over 50 is allowed to contribute to a retirement account — which you can deduct from your taxes if you earn less than $145,000 a year. This is nothing new, but the has shifted how catch-up contributions will work for the next few years.
For the 2024 tax year, if you’re 50 or older, you can contribute an additional $7,500 to an eligible employee retirement account, for a total of $30,500 per year. Eligible accounts include:
You can also make up to $3,500 in catch-up contributions on a SIMPLE 410(k) account, which is also deductible. Catch-up contributions of up to $1,000 are available on IRAs — but you can’t deduct this from your taxes.
Starting in 2025, taxpayers ages 60 and 63 years old can qualify for catch-up contributions on 401(k) as high as $10,000 — or 50% more than the normal catch-up contribution limit. Since rules around catch-up contributions are going through annual changes, consult with a tax specialist before making additional contributions to your account.
2. Retirement contribution “saver’s credit”
An IRA catch-up contribution might not be deductible, but it could boost your retirement savings contributions credit — or the “saver’s credit” — along with other catch-up contributions.
The saver’s credit is a tax credit available to low- and middle-income taxpayers. Credits run as high as $2,000 for individuals or $4,000 for married taxpayers filing jointly. This tax credit isn’t exclusive to older taxpayers, but since catch-up contributions increase the amount you can contribute to retirement accounts, they can also increase the saver’s credit you can receive.
The IRS calculates your credit based on 10% to 50% of your retirement savings contributions, depending on your income. See an estimate of your 2024 Saver’s Credit by answering a questionnaire on .
3. Additional medical deductions
There are a couple of healthcare-related deductions reserved for older taxpayers. Once you turn 55, you’re eligible to contribute additional funds to a health savings account — or an HSA. In 2023, you could contribute an additional $1,000, but that number is expected to increase in 2024.
This means if you’re 55 or older at the end of the tax year, you’re able to contribute $4,150 to your HSA if you use an individual healthcare plan and $8,300 if you use a family plan, plus at least $1,000. The IRS plans to increase the standard HSA contribution again in 2025: $4,300 for individual coverage and $8,550 for family plans. The IRS doesn’t tax HSA contributions, so you’ll lower your income tax the more you contribute to this type of account.
If you’re on Medicare, you get an additional tax break by being able to deduct your health insurance premiums in most cases. That’s because the as a medical expense, which you can deduct from your taxable income. But you must itemize your deductions to be eligible, and total medical expenses must be more than 7.5% of your adjusted gross income.
4. Free tax filing assistance
The IRS offers free assistance and basic tax return preparation to anyone ages 60 and older through the . This program is available through nonprofits that have received funding from the federal government. Volunteers who offer TCE services specialize in navigating income taxes related to pensions and retirement accounts — and many of them are retired themselves, according to the IRS.
The TCE includes the AARP’s Tax-Aide program, which specializes in assisting low and middle-income individuals over 60 with tax preparation. The Tax-Aide program is available in every state through easily accessible public spaces such as libraries, community centers and senior centers. Find a Tax-Aide location near you by visiting during tax season.
Call 800-829-1040 for live assistance with the TCE and 888-227-7669 for more information about Tax-Aide.
5. Additional standard deductions
Once you or your spouse turn 65, you can qualify for an additional…
Read More: Tax breaks after 50 you might not know about