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Tax season might feel far off, but the IRS has already set the stage for 2026 — and there are some updates worth paying attention to, especially if you’re retired or nearing retirement.
Inflation adjustments are raising income thresholds, standard deductions and the extra deduction for adults age 65 and older.
Thanks to a recently passed tax bill, there’s also a new limited-time bonus deduction designed specifically for older taxpayers.
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Let’s break down what’s changing, what’s new and how it might affect your bottom line in 2026 and beyond.
A little extra for retirees: A bigger additional standard deduction
If you’re 65 or older, you get a little more breathing room in your tax return this year. The IRS bumped up the additional standard deduction for 2026:
- Single filers and heads of household (age 65-plus): $2,050 (up from $2,000 in 2025)
- Married couples (65-plus): $1,650 per qualifying spouse (up from $1,600)
If both partners qualify, that’s a $100 total increase. It’s not life-changing, but enough to slightly reduce your taxable income — and that’s always a win.
For those who are both 65-plus and blind, that amount doubles:
- Singles/heads of household: $4,100
- Married, filing jointly: $3,300 per qualifying spouse
This “double bump” is meant to help taxpayers with additional challenges offset a bit more of their income.
Standard deduction amounts are also on the rise
Most Americans take the standard deduction instead of itemizing, and that number is getting a lift for 2026. The new amounts you’ll use when filing in early 2027:
|
Filing status |
2026 deduction |
Year-over-year change |
|---|---|---|
|
Married, filing jointly/surviving spouse |
$32,200 |
+$700 |
|
Single/married, filing separately |
$16,100 |
+$350 |
|
Head of household |
$24,150 |
+$525 |
With nearly 90% of taxpayers claiming the standard deduction, these adjustments will put a little more money back into most pockets.
The headliner: A temporary $6,000 ‘bonus deduction’ for older people
The biggest new development for retirees is a fresh, temporary deduction created by the GOP’s 2025 tax package — a four-year perk for those age 65 and older.
Here’s the highlight reel:
- Worth: Up to $6,000 per taxpayer
- Available: 2025 through 2028
- Income limits: Phases out starting at $75,000 (single) and $150,000 (joint)
- Eligibility: You can take it whether you itemize or claim the standard deduction
Even if you already claim deductions for mortgage interest, medical expenses or charitable giving, you can still tack on this additional benefit. Think of it as a short-term tax break designed to ease the burden on older Americans during a high-inflation period.
How these changes could affect you
Whether these updates have a big impact on you depends on your personal financial picture — but for many retirees, even small adjustments can matter.
Here’s how to make the most of them:
Stay strategic about income timing. Adjust when and how you withdraw from IRAs, pensions or brokerage accounts to remain in the most efficient tax bracket.
Double-check your filing strategy. Standard vs itemized deductions can look very different with these new thresholds.
Ask about the bonus deduction early. Because it’s temporary, you’ll want to plan to make the most of it over the next few years.
The takeaway
Updates for 2026 aren’t dramatic, but they’re still worth knowing — especially if you’re managing income from multiple sources in retirement.
A little planning now can help you take advantage of every available tax break, and that means keeping more of your money where it belongs: in your pocket.
If you’re not sure how these changes fit into your broader retirement plan, now’s the time to talk with a financial or tax adviser who can run the numbers and help you strategize before the next tax season rolls around.
Smart planning today means fewer surprises — and maybe a few extra dinners at your favorite local spot tomorrow.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
