3 Tax Changes That People 60+ Should Know

Key takeaways

• Maximize savings with higher standard deductions for older adults, as highlighted by AARP's Dan Bortz.
• Claim a new $6,000 deduction for those 65+, or up to $12,000 if married and eligible.
• Boost retirement funds with “Super Catch-Up” 401(k) contributions for ages 60–63 in 2025.

Summary

Tax changes for older adults can mean big savings, and AARP finance expert Dan Bortz highlights three key tax updates for people 60 and older that you shouldn’t overlook. First, the standard deduction is rising for those 65-plus, with single filers getting up to $2,000 extra and married couples receiving an additional $1,600 for each qualifying spouse. On top of that, there’s a new $6,000 deduction for individuals 65 and older — with married couples potentially qualifying for up to $12,000, making more of your income tax-free if you meet the income requirements.

A third major update is the introduction of “Super Catch-Up” 401(k) contributions for people ages 60 to 63, allowing you to save even more for retirement on a tax-advantaged basis. The bottom line: Understanding these tax changes for older adults can help you keep more of your hard-earned money and make the most of your retirement years. Visit aarp.org/taxes to see which new benefits could apply to you. 

The key takeaways and summary were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.

Full Transcript:

[00:00:00] If you’re 60 or older, there are three new tax changes you don’t want to miss. Number one, higher standard deductions for people

[00:00:08] 65-plus. For the 2025 tax year, single filers get an extra $2,000, and

[00:00:15] married couples filing jointly get $1,600 for each qualifying spouse.

[00:00:21] This applies whether or not you itemize your taxes. Number two, a new $6,000 deduction for people

[00:00:28] 65-plus. If you'’e married and both spouses are 65 or older, that deduction can be up to $12,000.

[00:00:36] This deduction stacks on top of your standard deduction, meaning even more of your income is not taxed. But there are income limits.

[00:00:46] If you’re a single filer, you may qualify for the full $6,000 if your income is $75,000 or less.

[00:00:54] For married couples filing jointly, that full amount generally applies up to about $150,000.

[00:01:01] As income goes higher than that, the deduction decreases and eventually phases out.

[00:01:07] Number three, “Super catch-up"” 401(k) contributions for people 60 to 63.

[00:01:13] If you’re working, you can save for retirement tax-free, but there’s a yearly limit on what you can put into a 401(k), 403(b) or a 457 plan.

[00:01:24] In 2026, you can contribute up to $24,500. Most people 50 and older can add an extra $8,000 catch-up contribution,

[00:01:33] raising your limit to $32,500. And starting this year,

[00:01:39] workers ages 60 to 63 get an even bigger boost: a new “Super Catch-Up of $11,250 for a total of $35,750.

[00:01:53] It’s another incentive to sock more money away for retirement. Bottom line, tax rules change year to year, and in 2025 there were some big ones.

[00:02:03] The more you know, the more money you can keep in your pocket. To see which ones may apply to you,

[00:02:08] visit aarp.org/taxes.