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Baby Boomers, born between 1946 and 1964, which means they range from about 62 to 80 years old in 2026, face a unique tax landscape as they balance retirement income, savings withdrawals, and rising living costs. Small oversights at tax time can mean paying more than necessary, even if you're trying to keep more of what you earn.
Many deductions are easy to miss because eligibility can change with age, income, or new tax laws. Understanding these often-forgotten breaks can help Boomers reduce taxable income and protect retirement cash flow.
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State and local tax (SALT) deductions
Boomers who itemize deductions may be able to deduct certain state and local taxes, including property taxes, income taxes, or sales taxes. Under recent tax law changes, the SALT deduction cap increased significantly, allowing eligible filers to deduct up to $40,000 effective beginning in 2025 through 2029, instead of the previous $10,000 limit.
This change applies for several years and can be especially meaningful for retirees with high property taxes. For Boomers in high-tax states, itemizing may now provide greater savings than taking the standard deduction.
New senior deduction
A newer and perhaps lesser-known tax break allows qualifying seniors to claim an additional deduction worth up to $6,000. Effective between 2025 and 2028, this new deduction is available to taxpayers age 65 or older and is available in addition to the existing senior standard deduction. The deduction begins phasing out with modified adjusted gross income (MAGI) over $75,000 (or $150,000 for joint filers).
Married couples may be able to double the benefit if both spouses qualify. Income limits apply, which makes it especially important to review eligibility before filing.
Extra standard deduction for those age 65 or older
The standard deduction increases automatically once you turn 65, a detail many older taxpayers overlook. For tax year 2025, the base standard deduction is $15,750 for single filers or those married filing separately, $31,500 for married couples filing jointly or surviving spouses, and $23,625 for heads of household.
If you are 65 or older, you qualify for an added boost — single filers receive an extra $2,000 for a total deduction of $17,750, while married couples filing jointly receive an additional $1,600 if one spouse qualifies ($33,100 total) or $3,200 if both spouses qualify ($34,700 total). These same additional amounts also apply if you or your spouse is legally blind, helping shield more retirement income from taxes without itemizing.
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Charitable contributions
Charitable giving remains a valuable deduction for Boomers who itemize, including cash donations, household items, and appreciated investments. Donating stocks or mutual funds held long term can reduce capital gains taxes while still providing a full charitable deduction.
Keeping accurate receipts and records is critical to support these claims. Tools like donor-advised funds (DAFs) can also help retirees manage giving more efficiently over time.
Home sale exclusion
Selling a primary residence can trigger large capital gains, but many Boomers qualify for a generous exclusion. Individuals may exclude up to $250,000 in gains, while married couples may exclude up to $500,000 if ownership and residency requirements are met.
This deduction is often overlooked during downsizing or relocation in retirement. Proper planning can eliminate or significantly reduce taxes on a home sale.
'Super' catch-up contribution
Some Boomers who are still working may qualify for enhanced retirement contributions. For tax year 2025, the catch-up limit increases to $11,250 for those who are ages 60, 61, 62, or 63. This is $3,750 higher than the standard $7,500 catch-up for those age 50 and older.
These higher limits can reduce taxable income while boosting late-career savings. Missing this opportunity could mean leaving valuable tax benefits unused.
'Extra' IRA catch-up contribution
Even if you aren't eligible for the expanded workplace retirement plan catch-up, Boomers age 50 and older can still make additional IRA contributions. For tax year 2025, you can contribute an additional $1,000 to your IRA on top of the 2025 contribution limit of $7,000, for a total of $8,000.
For traditional IRAs, these contributions may be deductible and lower adjusted gross income. The timing flexibility is especially helpful, since contributions can be made up until the tax filing deadline. This option can provide a last-minute way to reduce a tax bill.
Credit for the elderly or disabled
The Credit for the Elderly or the Disabled is easy to miss, largely because it applies only to lower-income retirees, but it can meaningfully reduce taxes for those who qualify. You may be eligible if you are age 65 or older, or retired due to permanent and total disability, and your income falls below certain thresholds — generally around $17,500 for single filers or $25,000 for married couples, depending on how much Social Security income you receive.
The credit itself can range from $3,750 to $7,500, providing meaningful relief for taxpayers on fixed incomes. Because it is a nonrefundable credit, it can reduce your tax bill to zero but will not increase your refund, and it requires filing Schedule R, which most tax software can handle automatically.
Bottom line
Boomers face a growing list of deductions tied to age, income, and evolving tax laws, which makes it easier than ever to miss valuable savings opportunities. From expanded SALT deductions to new senior-specific breaks, these overlooked items can meaningfully reduce taxable income.
Reviewing eligibility each year and coordinating deductions carefully can help retirees get ahead financially while protecting the savings they worked decades to build.
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