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 shortly. However for the 2026 submitting season (overlaying the 2025 tax 12 months), the principles have modified considerably as a result of “One Massive 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. Should you auto-pilot your return this 12 months, you can miss out on 1000’s 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 Type 1098 out of your mortgage lender (in case you nonetheless have a mortgage) or the precise county tax receipts in case you pay immediately. Not like earlier years the place this deduction was capped out early, your full property tax invoice would possibly now be deductible. In case you have been shredding these payments pondering “I take the usual anyway,” it’s worthwhile to dig them out or obtain fee historical past out of your county treasurer’s web site instantly.
2. The QCD “Acknowledgment Letter”
If you’re over 70½ and made a Certified Charitable Distribution (QCD) immediately out of your IRA to a charity, you prevented paying taxes on that cash. Nevertheless, the IRS Type 1099-R you obtain out of your custodian does not clearly show the cash went to charity—it usually 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 optionally available for custodians this 12 months. Subsequently, the written acknowledgment letter from the charity (dated earlier than you file) is your solely bulletproof protection throughout an audit. You will need 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 laptop will default to taxing the total quantity.
3. The “Senior Bonus” Earnings Worksheet
New for the 2025 tax 12 months is the “Senior Bonus” deduction—an additional customary deduction enhance for filers over age 65. Nevertheless, this bonus is means-tested, which means it vanishes in case your revenue is just too excessive.
You gained’t obtain a particular type for this, however it’s worthwhile 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). Should you fail to calculate your Modified Adjusted Gross Earnings (MAGI) precisely by gathering all revenue sources, you would possibly declare a bonus you aren’t entitled to, triggering an computerized IRS correction letter and a delayed refund.
4. Type 1099-Ok (The “Correction” Copy)
The IRS has formally reverted the 1099-Ok reporting threshold to $20,000 and 200 transactions for the 2025 tax 12 months, retroactively killing the $600 rule that anxious many informal sellers.
Whereas most retirees gained’t get a 1099-Ok for promoting a used sofa on eBay, some platforms could have despatched them erroneously earlier than the legislation was finalized. Should you obtain a 1099-Ok within the mail for a small quantity (e.g., $800), do not ignore it. You will need to file a return that lists this revenue after which “zero it out” with a corresponding adjustment. Should you simply trash the faulty type, the IRS automated underreporter system (AUR) will flag your return for lacking revenue.
5. Type 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 Type 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 manner as a result of they’re used to incomes $50 a 12 months. Lacking this manner is the #1 cause for “Math Error” notices in 2026, as banks report this information on to the IRS.
Don’t Depend on “Final 12 months’s” Record
The tax code is a dwelling doc, and for 2026, it has grown new tooth. If you wish to preserve your refund, it’s worthwhile to show each deduction with paper.
Did you obtain an faulty 1099-Ok this 12 months? Go away a remark beneath—inform us the way you mounted it!
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