What Are the Tax Deductions for Seniors?

A tax deduction is a reduction in the amount of income subject to tax. For individuals age 65 or older, the tax code provides several deductions that can lower their annual tax liability. A tax deduction reduces taxable income, while a tax credit directly reduces the amount of tax owed.

The Higher Standard Deduction for Seniors

Taxpayers can take a standard deduction, a fixed dollar amount that reduces their taxable income. The Internal Revenue Service (IRS) allows for a higher standard deduction for individuals who are age 65 or older or who are legally blind. This additional amount is added directly to the base standard deduction.

For the 2025 tax year, the additional standard deduction for a taxpayer who is 65 or older is $2,000 for those filing as Single or Head of Household. For those who are Married Filing Jointly, Married Filing Separately, or a Qualifying Widow(er), the additional amount is $1,600 per qualifying individual. A taxpayer who is both 65 or older and blind can claim two additional amounts.

A single individual age 65 or older would have a total standard deduction of $17,000 ($15,000 base + $2,000 additional). A married couple filing jointly where both spouses are over 65 would have a total standard deduction of $33,200 ($30,000 base + $1,600 for each spouse).

Common Itemized Deductions for Seniors

Instead of the standard deduction, taxpayers can itemize by listing specific deductible expenses on Schedule A of Form 1040. For many seniors, certain expenses can add up to more than their available standard deduction, making itemizing a better financial choice, especially when significant medical costs are incurred.

A primary itemized deduction is for medical and dental expenses. Taxpayers can deduct the amount of qualifying medical expenses that exceeds 7.5% of their Adjusted Gross Income (AGI). This includes costs such as health insurance premiums for Medicare Parts B and D, Medigap policies, and qualified long-term care insurance premiums, which are subject to age-based limits. Other deductible expenses include prescription drugs, payments to doctors, hearing aids, and the cost of in-home or nursing home care if it is for medical reasons.

Another itemized deduction is for state and local taxes (SALT), including property taxes and either state income or general sales taxes, though the total claim is capped at $10,000 per household. Charitable contributions to qualified organizations can also be itemized, with deductions for cash donations up to 60% of AGI and separate rules for donating property.

Other Key Tax-Reducing Strategies

A Qualified Charitable Distribution (QCD) is available to individuals age 70½ and older. A QCD allows a taxpayer to make a direct, tax-free transfer of up to $108,000 for 2025 from their Individual Retirement Arrangement (IRA) to an eligible charity. This amount is excluded from the taxpayer’s gross income and can be used to satisfy the IRA owner’s Required Minimum Distribution (RMD) for the year.

Seniors who continue to have earned income may be able to make deductible contributions to a traditional IRA. The ability to deduct these contributions depends on income level and whether the individual or their spouse is covered by a retirement plan at work. The age restriction for making contributions to a traditional IRA has been eliminated.

A Health Savings Account (HSA) allows for tax-deductible contributions, but an individual cannot contribute to an HSA once they are enrolled in any part of Medicare. To avoid a tax penalty, it is advisable to stop making HSA contributions up to six months before enrolling in Medicare. This is because Medicare Part A coverage can be retroactive for up to six months, which could cause contributions made during that period to be considered excess and subject to a penalty.

Choosing Between the Standard Deduction and Itemizing

The decision to take the standard deduction or to itemize requires a comparison of which option results in the larger deduction.

First, calculate your total standard deduction by finding the base amount for your filing status and adding any additional amounts for being age 65 or older or blind. For example, a single filer, age 68, would have a standard deduction of $17,000 for the 2025 tax year.

Next, add up all potential itemized deductions. This includes totaling all qualifying medical expenses above the 7.5% AGI threshold, state and local taxes up to the $10,000 limit, and charitable contributions.

If the total of your itemized deductions is greater than your standard deduction, you should itemize. For instance, if the 68-year-old single filer calculated their itemized deductions to be $12,000, they would be better off taking their $17,000 standard deduction.