3 Steps Every Retiree Should Take in April Before Tax Deadline
Key Points
Claiming the new "senior bonus" is a no-brainer for retirees.
This added deduction could be used in a tax-neutral Roth IRA conversion.
Retirees should also reevaluate whether or not itemizing deductions is financially advantageous.
- The $23,760 Social Security bonus most retirees completely overlook ›
The clock is ticking to file your federal income taxes. Surveys have found that between one-fourth and one-third of Americans wait until almost the last minute to file.
If you're in that group and are a retiree, you still have time to take advantage of ways to optimize how much money you keep. Here are three steps every retiree should take in April before the tax deadline.
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1. Claim the "Senior Bonus" deduction
The most important thing retirees should do before the tax deadline is to claim the "senior bonus" deduction that went into effect with the passage of the One Big Beautiful Bill Act (OBBBA). All you have to do to claim this newly added deduction is check the box on IRS Form 1040 or 1040-SR that indicates you are 65 or older.
If your filing status is single, you may be eligible for an additional $6,000 deduction. If your filing status is married, filing jointly, you and your spouse could receive a combined $12,000 deduction. The catch is that the additional deduction is phased out if your modified adjusted gross income (MAGI) is over $75,000 if your filing status is single or $150,000 if your filing status is married filing jointly.
2. Consider using the "Senior Bonus" to offset a Roth IRA conversion
If you like the idea of short-term pain for long-term gain, you may want to consider a Roth IRA conversion. The idea here is to convert $6,000 of a traditional IRA to a Roth IRA, with the "senior bonus" offsetting the taxes that would ordinarily be owed on the withdrawal of funds from a traditional IRA. This tax-neutral move will allow you to grow your money tax-free in a Roth IRA without increasing your 2026 taxes.
3. Reevaluate itemizing your deductions
If you have usually elected the standard deduction in the past, you should reevaluate itemizing your deductions in 2026. Why? The SALT (State and Local Tax) cap increased from $10,000 to $40,000 in 2026 for anyone with MAGI under $500,000, thanks to the OBBBA. This change could make it financially beneficial to itemize deductions rather than use the standard deduction. (Note: If you're eligible, you will still receive the additional "senior bonus" deduction either way.)
Retiree-friendly rules
2026 has ushered in the most retiree-friendly tax rules in years. If you haven't filed your taxes yet, you could be in store for some good news.
The $23,760 Social Security bonus most retirees completely overlook
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