Places of worship
DrWeb9 Tax Deductions Middle Class Retirees Shouldnโt Miss in 2026 โ AOL
9 Tax Deductions Middle Class Retirees Shouldnโt Miss in 2026
By Stacy Garrels, Sun, January 25, 2026 at 9:08 AM PST
From articleโฆTax season can feel a lot different once youโve retired. Youโre no longer tracking multiple W-2s or trying to squeeze in last-minute business expenses, but that doesnโt mean your taxes automatically get any easier.
Many middle-class retirees navigate multiple income sources, pay rising Medicare premiums, and assume certain deductions no longer apply once they stop working full-time.
Yet some of the most valuable tax breaks available in retirement are either new, misunderstood, or commonly overlooked. You can avoid retirement mistakes by keeping these key tax deductions on your radar for 2026.
Find Out: 14 benefits seniors are entitled to but often forget to claim
1. New senior deduction for those 65+
If youโre 65 or older, a new temporary senior deduction may reduce your taxable income. For retirees within certain income brackets, this deduction allows you to exclude up to $6,000 from taxable income between 2025 and 2028.
This deduction is separate from the standard deduction, which means eligible retirees could further lower their taxable income without having to itemize. Although not all income levels will qualify, itโs a meaningful benefit thatโs worth checking into before you file.
Who really has the cheapest auto insurance in your area? Check your zip code here.
2. Using HSA funds for Medicare premiums
Health Savings Accounts (HSAs) donโt lose their value once you retire. If youโve built up an HSA balance, you can continue using those funds tax-free for qualified medical expenses, which include your Medicare premiums.
Part B premiums alone can run over $200 a month for most retirees. Paying those costs from an HSA instead of taxable income can stretch your retirement dollars further and reduce overall tax burden.
3. Family gifting within annual limits
Most retirees wonโt face the federal estate tax, but gifting rules can still play a role in tax planning for you and your loved ones. Each year, you can give up to the annual gift exclusion amount to as many people as you want without triggering gift taxes or filing additional paperwork.
Continue/Read Original Article Here: 9 Tax Deductions Middle Class Retirees Shouldnโt Miss in 2026 โ AOL
#AOL #InternalRevenueService #IRS #List #MiddleClass #NineOptions #Retirees #TaxDeductions #Taxes
SideQuesting
Stef's Picks
nonlinear