I Asked ChatGPT Which Lesser-Known Tax Breaks Seniors Can Use To Maximize Refunds
Written by
Angela Mae Watson
Edited by
Rebekah Evans
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The IRS has special rules for those ages 65 and up, including tax credits and deductions that can shave hundreds or thousands off their tax bill.
Many of these tax breaks are dependent on factors like filing status and income. Still, if you’re looking for lesser-known tax breaks you can use to maximize your refund, you’re in good company. GOBankingRates asked ChatGPT this very question. Here’s what it said.
Lesser-Known Tax Breaks for Seniors
According to the IRS, the average 2025 tax refund was $3,167. This year, that number is projected to rise by an additional $1,000 — give or take, per the White House.
Getting a tax refund is exciting, but what’s even better is not owing anything. To do this, you’ll want to get the most tax breaks possible when you file with the IRS.
ChatGPT provided the following lesser-known tax breaks seniors could qualify for, but usually miss out on:
- Higher standard deduction: The 2026 standard deduction has increased. For the 2025 to 2028 tax years, most seniors are eligible for an additional $6,000 ($12,000 if married filing jointly).
- Tax credit for elderly or disabled taxpayers: This credit ranges from $3,750 to $7,500. It’s available as soon as you turn 65, though income limits apply. Some seniors either don’t know about it or assume they don’t qualify. Use Form 1040 (Schedule R) for eligibility.
- Medical travel and mileage deductions: Seniors who itemize can claim unreimbursed medical and dental expenses exceeding 7.5% of their AGI. They may also deduct mileage for driving to doctor’s appointments, parking, toll fees or qualified long-term expenses (up to a certain amount).
- Certain home modifications: Medically necessary renovations may be deductible. This might include things that help with mobility and accessibility, like a new ramp or bathtub grab bar.
- Qualified charitable distributions (ages 70 1/2 and up): QCDs satisfy required minimum distributions, which usually kick in at age 73. They’re not included in taxable income and may even lower Medicare premium surcharges. Individuals who meet the age requirements can transfer up to $111,000 this year from an IRA to a qualified charity, per the CDC Foundation.
- Capital loss carryforwards: Seniors who realized investment losses (capital losses exceeding capital gains) beyond a certain amount may be able to claim them going forward. As of this year, they can deduct up to $3,000 against their ordinary income.
- Saver’s Credit: If you’re still working, even part-time and contributing to a retirement account, you could qualify for this. The credit amount is between 10% and 50% of your qualified contributions, depending on income. It’s nonrefundable, so you won’t get any excess back as a refund. But it can lower your tax liability.
- Circuit breaker credits: Often offered at a state level, these are usually geared toward low-income taxpayers. They’re most often designed to help offset excessively high property taxes relevant to income. Credits usually range from around $200 to $1,500 per household, according to the Institute on Taxation and Economic Policy (ITEP).
Before filing, make sure you’re getting the tax breaks you deserve.
“For taxpayers who don’t want to spend a lot on preparation, the best step is to gather documents early and use IRS-approved free filing services or AARP Tax-Aide programs,” said Camishe Golden, enrolled agent (EA) with Wiggam Law and former IRS revenue officer. “Even a short consultation with a qualified tax professional can prevent costly mistakes and identify deductions you may have missed.”
Editor’s note: All tax information was sourced from the IRS, unless otherwise stated.
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