For the previous few years, tax season for retirees was comparatively boring. You took the usual deduction, ignored your shoe field of receipts, and filed rapidly. However for the 2026 submitting season (masking the 2025 tax 12 months), the principles have modified considerably as a result of “One Large Lovely Invoice Act” (OBBBA) and shifting financial situations.
With the reinstatement of upper deductions and new “Senior Bonus” credit, the precise items of paper you want have modified. In the event you auto-pilot your return this 12 months, you would miss out on hundreds in write-offs. Earlier than you head to your accountant or log into TurboTax, be sure to have hunted down these 5 often-overlooked paperwork.
1. Property Tax Payments (The “SALT” Receipt)
For years, the $10,000 cap on State and Native Taxes (SALT) made property tax payments irrelevant for a lot of retirees in high-tax states. In 2026, that panorama has shifted. The brand new tax laws has raised the SALT cap considerably (to $40,000 for a lot of filers), bringing itemization again into play.
You want your Kind 1098 out of your mortgage lender (when you nonetheless have a mortgage) or the precise county tax receipts when you pay instantly. In contrast to earlier years the place this deduction was capped out early, your full property tax invoice may now be deductible. In case you have been shredding these payments pondering “I take the usual anyway,” you’ll want to dig them out or obtain cost historical past out of your county treasurer’s web site instantly.
2. The QCD “Acknowledgment Letter”
In case you are over 70½ and made a Certified Charitable Distribution (QCD) instantly out of your IRA to a charity, you prevented paying taxes on that cash. Nonetheless, the IRS Kind 1099-R you obtain out of your custodian does not clearly show the cash went to charity—it typically simply lists it as a “Regular Distribution” (Code 7), making it look absolutely taxable.
Whereas a brand new “Code Y” was launched for 2025, its use is non-compulsory for custodians this 12 months. Due to this fact, the written acknowledgment letter from the charity (dated earlier than you file) is your solely bulletproof protection throughout an audit. It’s essential to bodily hand this letter to your accountant to show the $5,000 withdrawal shouldn’t be added to your taxable revenue. With out it, the IRS pc will default to taxing the complete quantity.
3. The “Senior Bonus” Revenue Worksheet
New for the 2025 tax 12 months is the “Senior Bonus” deduction—an additional commonplace deduction enhance for filers over age 65. Nonetheless, this bonus is means-tested, that means it vanishes in case your revenue is simply too excessive.
You received’t obtain a particular kind for this, however you’ll want to compile a provisional revenue worksheet that features “invisible” revenue like tax-exempt municipal bond curiosity. The phase-out for this bonus begins at $75,000 (single) or $150,000 (joint). In the event you fail to calculate your Modified Adjusted Gross Revenue (MAGI) precisely by gathering all revenue sources, you may declare a bonus you aren’t entitled to, triggering an automated IRS correction letter and a delayed refund.
4. Kind 1099-Okay (The “Correction” Copy)
The IRS has formally reverted the 1099-Okay reporting threshold to $20,000 and 200 transactions for the 2025 tax 12 months, retroactively killing the $600 rule that nervous many informal sellers.
Whereas most retirees received’t get a 1099-Okay for promoting a used sofa on eBay, some platforms might have despatched them erroneously earlier than the regulation was finalized. In the event you obtain a 1099-Okay within the mail for a small quantity (e.g., $800), do not ignore it. It’s essential to file a return that lists this revenue after which “zero it out” with a corresponding adjustment. In the event you simply trash the inaccurate kind, the IRS automated underreporter system (AUR) will flag your return for lacking revenue.
5. Kind 1099-INT (The “Excessive-Yield” Shock)
Within the period of 0.1% rates of interest, financial institution curiosity was a rounding error. In 2025, with financial savings accounts paying 4% to five%, your “protected” cash generated a big tax invoice.
Look ahead to Kind 1099-INT. A retiree with $100,000 in a Excessive-Yield Financial savings Account earned roughly $4,500 in curiosity final 12 months. That’s absolutely taxable abnormal revenue. Many seniors overlook this kind as a result of they’re used to incomes $50 a 12 months. Lacking this kind is the #1 purpose for “Math Error” notices in 2026, as banks report this knowledge on to the IRS.
Don’t Depend on “Final Yr’s” Listing
The tax code is a dwelling doc, and for 2026, it has grown new enamel. If you wish to maintain your refund, you’ll want to show each deduction with paper.
Did you obtain an inaccurate 1099-Okay this 12 months? Depart a remark beneath—inform us the way you mounted it!
