California considers temporary tax on the state’s wealthy
The California Billionaire Tax Act proposes a one-time tax on the state’s wealthiest residents to increase revenue for services such as health care.
Tax season can be painful for many Americans. However, it may come with perks for some people.
Americans 65 and older could potentially save money this year by claiming the additional standard deduction and another deduction triggered by the One Big Beautiful Bill Act. Additionally, some people aged 60 to 63 can take action now to save even more in 2027 using super catch-up contributions.
These strategies can help seniors reduce their overall taxable income, meaning less taxes and more money in their wallets. Here are some ways seniors can save on taxes.
What is basic deduction?
When filing taxes, everyone can reduce their taxable income by taking a fixed amount, known as the standard deduction, or by itemizing deductions if they exceed the standard deduction.
According to the Internal Revenue Service, the standard deduction for tax year 2025 is:
- $15,750 for individual applications, single or married
- $31,500 for married couples filing jointly or eligible surviving spouses
- $23,625 for head of household
What is excess basic deduction?
If you are an American over 65 or visually impaired, you may be eligible for additional deductions. The extent of the additional cut depends on your filing status, whether you or your spouse are 65 or older, and whether either you or your spouse is blind. Check if you’re eligible:
- $2,000 for taxpayers who are single, head of household, or blind;
- $1,600 for married taxpayers (per eligible person) or eligible surviving spouse or blind taxpayer.
So, for example, the standard deduction for a single person age 65 or older or visually impaired would total $17,750 ($15,750 standard deduction plus $2,000 additional standard deduction).
Alternatively, a married couple with two adults age 65 or older would take a total deduction of $31,500 (standard deduction) plus $1,600 for each adult age 65 or older, for a total of $34,700.
If you are 65 or older and have a visual impairment, your additional standard deduction is the sum of the additions for both your age and your visual impairment.
- $4,000 if you are single or filing as head of household.
- $3,200 per eligible individual for married people filing jointly or separately.
Note: For tax year 2025, you are considered to be 65 years old if you were born before January 2, 1961. Click here for the IRS’ specific definition of blindness.
Additional senior tax credits from the One Big Beautiful Bill
You can expect to save even more this filing season. Many taxpayers age 65 and older who fall within the income limits can deduct up to an additional $6,000 of income on their federal returns for the 2025 tax year. This is thanks to the “One Big Beautiful Bill Act,” which was signed into law on July 4, 2025.
According to the IRS, the OBBBA provides an additional deduction of $6,000 per eligible individual, and if both spouses qualify, a married couple would receive a total of $12,000.
What is super catch-up contribution?
Some Americans may have taken advantage of new opportunities last year to boost their retirement savings and reduce their taxable income with supersized catch-up contributions.
The 2026 catch-up contribution limit is $8,000 for participants age 50 and older in workplace plans, including 401(k)s, 403(b)s, government 457 plans, and federal thrift savings plans. This is up from the previous limit of $7,500, according to the IRS. In addition to the standard contribution limit for your age group ($24,500), your total contribution limit is $32,500.
Eligibility for super catch-up contributions in 2026 is determined by age. According to the IRS, if you are between 60 and 63 (inclusive) at the end of the year, you are eligible to contribute up to $11,250 in increased catch-up contributions, instead of the $8,000 limit mentioned above. Once you turn 64, your catch-up contribution limit reverts to the regular limit (currently $8,000). But if you’re nearing 60, be prepared for that catch-up period to make an outsized contribution to your 401(k).
Another caveat: Not all employers still offer super-large contribution limits. So ask your employer. Experts say companies should lobby to provide such donations if they don’t already do so.
In addition to lowering taxable income for eligible employees, the cap increase could also help those who weren’t able to save as much early in their careers by having more savings during the critical pre-retirement period, financial services firm Voya previously told USA TODAY.
Contributed by: Medora Lee and Susan Tomper, USA TODAY
