February 28, 2026, 7:02 a.m. ET
Tax season isn’t always a joy for many Americans. Yet, for some, it does come with a few advantages.
Individuals aged 65 and above might find ways to save this year by claiming both the additional standard deduction and another deduction prompted by the One Big Beautiful Bill Act. Plus, those aged 60 to 63 can take steps now to benefit even more in 2027 by utilizing super catch-up contributions.
These strategies may assist seniors in lowering their overall taxable income, which translates to reduced taxes and more money in their pockets. Here are a few methods seniors can employ to save on taxes.
What is a basic deduction?
When filing taxes, everyone can lower their taxable income by utilizing a fixed amount known as the standard deduction or by itemizing deductions if those exceed the standard deduction.
According to the Internal Revenue Service, the standard deduction for the tax year 2025 is as follows:
- $15,750 for individual applicants, regardless of marital status;
- $31,500 for married couples filing jointly or qualifying surviving spouses;
- $23,625 for heads of household.
What is an excess basic deduction?
Those who are 65 years or older or visually impaired may be eligible for an additional deduction. The amount of this additional deduction varies based on your filing status and whether you or your spouse meet the age or visual impairment criteria. Here’s a breakdown:
- $2,000 for single taxpayers, heads of household, or blind individuals;
- $1,600 for each eligible married taxpayer or blind married taxpayer.
This means that a single person age 65 or older, or someone who is visually impaired, would qualify for a total of $17,750 ($15,750 standard deduction plus $2,000 additional deduction).
For married couples, if both partners are 65 or older, their total deduction would equal the standard amount of $31,500 plus $1,600 for each eligible adult, summing up to $34,700.
Moreover, if you’re 65 or older and have a visual impairment, the additional standard deduction combines benefits for both factors:
- $4,000 for singles or heads of household;
- $3,200 for each eligible individual in married filings.
Note: For the 2025 tax year, you are considered 65 if you were born before January 2, 1961. The IRS provides specific definitions for blindness.
Additional senior tax credits from the One Big Beautiful Bill
This tax season may bring even greater savings. Certain taxpayers aged 65 and older, within specific income thresholds, may deduct an extra $6,000 of income on their federal returns for the 2025 tax year, thanks to the “One Big Beautiful Bill Act,” enacted on July 4, 2025.
The additional deduction provided by this act allows for $6,000 per eligible individual. This means if both spouses meet the requirements, the couple can receive up to $12,000.
What is a super catch-up contribution?
Some individuals may have leveraged new opportunities last year to enhance their retirement savings and diminish their taxable income through larger catch-up contributions.
The catch-up contribution limit for 2026 sits at $8,000 for those aged 50 and older in workplace plans, such as 401(k)s and similar programs. This is an increase from the previous limit of $7,500. Alongside the standard contribution limit for that age bracket of $24,500, the total contribution limit can reach $32,500.
Eligibility for super catch-up contributions in 2026 hinges on age. According to the IRS, individuals aged between 60 and 63 can contribute up to $11,250 in catch-up contributions, a step up from the $8,000 limit. However, once turning 64, the catch-up limit returns to the standard amount. So, if you’re nearing 60, this could be a prime moment to significantly boost your 401(k) contributions.
Just a heads-up: Not all employers may offer these larger contribution limits, so it’s advisable to check in with your employer. Experts suggest that companies should advocate for the provision of such contribution opportunities if they aren’t currently available.
In addition to benefiting eligible employees by lowering their taxable income, this limit increase could assist individuals who weren’t able to save as much earlier in their careers, enhancing their savings in that crucial pre-retirement window.
