- Home
- Taxes
- Tax Planning
These five key tax strategies can help retirees navigate new rules and deductions, reduce your taxes and preserve more of your retirement income.
By
Luke McCarty, CFP®, CRPC®
published
10 April 2026
in Features
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
- Copy link
- X
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Signup +
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Signup +
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Signup +
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Signup +
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Signup +
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Signup +
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Signup +
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Signup +
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Signup + An account already exists for this email address, please log in. Subscribe to our newsletter
The U.S. tax code now exceeds 70,000 pages, with hundreds more added in 2025 alone. With so much complexity, it's easy for retirees to miss valuable opportunities to reduce their tax burden.
Here are five key tax tips to consider if you're still working on your 2025 taxes and as you plan for your 2026 tax return.
Tip No. 1: Understand the new $6,000 deduction for older people
Recent tax law changes introduced a temporary deduction for people age 65 and older, designed to help offset the taxation of Social Security benefits — but it doesn't benefit everyone equally.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
CLICK FOR FREE ISSUE
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Sign upHere's how it works:
- You must be age 65 or older by the end of the tax year
- You can deduct up to $6,000 per person ($12,000 for married couples)
- This deduction is available even if you take the standard deduction
- It phases out starting at $75,000 (single) and $150,000 (married filing jointly)
Because of the income limits, proactive tax planning is essential. Many retirees can benefit by managing their income — either reducing it to stay below the thresholds or increasing it strategically to fully utilize the deduction during its availability from 2025 through 2028.
About Adviser Intel
The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
Tip No. 2: Know the rules on deducting car loan interest
Another notable change allows for the deduction of car loan interest — up to $10,000 per year — but with specific requirements.
To qualify, the vehicle must be assembled in the United States. You can check the VIN on NHTSA's website, or you can verify the "final assembly point" on the window sticker.
Income phaseouts begin at $100,000 (single) and $200,000 (married filing jointly).
Keep in mind, this is a tax deduction — not a credit. For example, if you pay $2,500 in interest and are in the 22% tax bracket, your tax savings would be about $550.
While helpful, this shouldn't drive your purchase decision — always prioritize your overall financial plan.
Tip No. 3: Reduce Medicare IRMAA surcharges
Higher-income retirees may pay additional Medicare premiums known as IRMAA (income-related monthly adjustment amount). These surcharges are based on your modified adjusted gross income (MAGI) from two years prior.
If your income has recently decreased due to retirement or another life-changing event, you may be able to lower your premiums.
Steps to take:
- Complete Form SSA-44
- Identify a qualifying life-changing event, such as retirement or reduced work
- Submit documentation as required
If approved, your Medicare premiums will be recalculated, and you may receive a refund for any excess IRMAA already paid.
While not technically a tax, IRMAA functions similarly by increasing costs based on income — making tax planning just as important.
Tip No. 4: Take advantage of above-the-line charitable deductions
With fewer taxpayers itemizing deductions today, many retirees have lost the ability to deduct charitable contributions.
However, starting in 2026, a new provision allows for "above-the-line" charitable deductions:
- Up to $1,000 for single filers
- Up to $2,000 for married filing jointly
- Applies even if you take the standard deduction
This creates a renewed incentive to track charitable donations. Be sure to keep receipts, as this will appear as a new line item on your 2026 tax return. The donation must be made in cash to a qualifying charity.
Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.
Tip No. 5: Use qualified charitable distributions (QCDs)
For retirees age 70½ or older, qualified charitable distributions (QCDs) remain one of the most powerful tax-saving strategies.
- You can donate up to $111,000 per person directly from an IRA to charity
- The distribution is excluded from your taxable income
- It can also count toward your required minimum distribution (RMD)
For example, if your RMD is $50,000, and you donate $25,000 through QCDs, you need to withdraw — and pay taxes on — only the remaining $25,000.
It's important to note that QCDs are not clearly reflected on your Form 1099-R, so you must report them properly or inform your tax professional.
Many custodians offer convenient ways to facilitate these donations, including direct check mailing or dedicated checkbooks for charitable giving.
The bottom line
Tax planning in retirement requires more than just filing a return — it demands strategy. With new rules and opportunities emerging, staying informed and proactive can help reduce your tax burden, manage health care costs and preserve more of your retirement income.
Related Content
- Don't Make These 5 Common Mistakes on Your Tax Return
- 4 Smart Ways to Use Your Tax Return for Financial Planning
- Ask the Editor: Itemized Deductions
- Hitting Tax Deadlines Is Smart, and Year-Round Tax Planning Is Even Smarter
- Can AI Help You Find a Bigger Tax Refund? What the IRS Says About Amended Returns
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Investment advisory services are offered through McCarty Wealth, LLC, a registered investment adviser offering advisory services in the State of Florida and other jurisdictions where registered or exempted. Insurance services offered through McCarty Wealth Insurance Services, LLC. McCarty Wealth, LLC and McCarty Wealth Insurance Services, LLC are affiliated entities.
DisclaimerThis article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
TOPICS Adviser Intel Get Kiplinger Today newsletter — freeContact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.
Luke McCarty, CFP®, CRPC®Social Links NavigationPresident, McCarty Wealth, LLCLuke McCarty is a CERTIFIED FINANCIAL PLANNER™ (CFP®) and Chartered Retirement Planning Counselor (CRPC®) dedicated to helping individuals and families make sound financial decisions. With a passion for empowering clients to achieve their financial goals, Luke specializes in providing comprehensive financial planning services encompassing tax planning, employee benefits and retirement planning, estate planning, investment management and insurance strategies.
