10 Tax Breaks After 50 You Might Be Missing Out On

Once you turn 50, you're running low on time to increase your savings for retirement. Fortunately, several tax breaks kick in at this milestone age, making it easier to build wealth in the few decades remaining before you leave the workforce for good.

Keep reading to learn which tax breaks you might qualify for during this crucial decade.

Since 401(k) retirement accounts are tax-advantaged, the federal government limits the amount you can contribute each tax year. However, once you turn 50, you can start making catch-up contributions so you can save more in the years before retirement.

For the 2025 tax year, people ages 50 and up can contribute an extra $7,500 per year, bringing their total contribution to $31,000.

If you have an IRA in place of (or alongside) an employer-sponsored 401(k), you can contribute an extra $1,000 per year to your IRA once you turn 50.

That brings your annual contribution limit up to $8,000 for the 2025 tax year.

Health savings accounts (HSAs) are tax-advantaged accounts for individuals with high-deductible insurance plans. Once you're enrolled in Medicare, you can no longer contribute to an HSA, though you can continue to withdraw funds from an established one as long as you spend that money on qualifying medical expenses.

If you're younger than 55, you can only contribute $4,300 to your HSA per year, but those 55 and older can contribute $5,300 per year.

Once you turn 59½, you're no longer subject to the typical 10% early withdrawal fee if you decide to take money out of a qualifying IRA.

Additionally, if you retire early at age 55, you're allowed to withdraw money from the 401(k) associated with your most recent employer without paying an additional tax.

Most Americans must file a federal income tax return if they earn more than $14,600 as an individual or $30,750 as a married couple filing jointly.

For those 65 and older at the end of the tax year, the threshold is slightly higher: $16,550 for individuals or $32,300 for couples when both spouses are at least 65. (Figures reflect the 2024 tax year and may adjust annually.)

Depending on where you live, you may qualify for age-specific property tax breaks unique to your city, county, or state. For example, 16 states plus Washington, D.C., offer property tax exemptions for some seniors.

In 17 other states, seniors can qualify for tax credits, while a handful of other states are trying to slow property tax growth with a temporary tax freeze.

In 2025, adults 65 and older can claim a standard plus an additional deduction of $21,750 if filing single, or $43,500 if married and filing jointly.

However, income limits apply: single filers must have a modified adjusted gross income (MAGI) of $75,000 or less, and married couples $150,000 or less, to get the full amount. The deduction gradually decreases for higher incomes.

If you're 65-plus or you've had to retire due to a permanent disability, you can likely claim the Credit for the Elderly or Disabled as long as you meet certain income standards.

Rather than lowering your overall taxable income for the year, a tax credit like this lowers your taxes as a whole by anything from $3,750 to $7,500 per year.

Once you reach a certain age, you have to start making required minimum distributions (RMD) from your retirement accounts. This means paying taxes on money taken from any tax-advantaged accounts.

If you're 70½ and need to make an RMD, you can avoid withdrawing money and increasing your overall taxable income by transferring up to $108,000 per year directly from your IRA to a qualifying charity.

This isn't exactly a tax break, but the AARP Foundation Tax-Aide service offers free tax-filing services each year that can help you save hundreds of dollars in the filing fees charged by tax software services.

AARP usually sets up shop at your local library, community center, or senior center, but you can also check AARP's website during tax season to find your nearest Tax-Aide location.

As you get older, it becomes more important to keep more cash in your wallet whenever possible. Along with making smart tax moves, you can continue to build a tidy nest egg for yourself by making smart investments, downsizing before you retire, and avoiding unnecessary purchases in favor of saving more.