For the previous couple of 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 yr), the principles have modified considerably because of the “One Huge Lovely Invoice Act” (OBBBA) and shifting financial circumstances.
With the reinstatement of upper deductions and new “Senior Bonus” credit, the particular items of paper you want have modified. In case you auto-pilot your return this yr, you can miss out on hundreds in write-offs. Earlier than you head to your accountant or log into TurboTax, ensure you 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 straight. In contrast to earlier years the place this deduction was capped out early, your full property tax invoice may now be deductible. When 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) straight out of your IRA to a charity, you averted 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 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 elective for custodians this yr. Subsequently, the written acknowledgment letter from the charity (dated earlier than you file) is your solely bulletproof protection throughout an audit. You could bodily hand this letter to your accountant to show the $5,000 withdrawal shouldn’t be added to your taxable earnings. With out it, the IRS laptop will default to taxing the complete quantity.
3. The “Senior Bonus” Earnings Worksheet
New for the 2025 tax yr is the “Senior Bonus” deduction—an additional commonplace deduction increase for filers over age 65. Nevertheless, this bonus is means-tested, which means it vanishes in case your earnings is simply too excessive.
You gained’t obtain a selected type for this, however you’ll want to compile a provisional earnings worksheet that features “invisible” earnings like tax-exempt municipal bond curiosity. The phase-out for this bonus begins at $75,000 (single) or $150,000 (joint). In case you fail to calculate your Modified Adjusted Gross Earnings (MAGI) precisely by gathering all earnings sources, you may declare a bonus you aren’t entitled to, triggering an automated IRS correction letter and a delayed refund.
4. Type 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 yr, retroactively killing the $600 rule that frightened many informal sellers.
Whereas most retirees gained’t get a 1099-Okay for promoting a used sofa on eBay, some platforms might have despatched them erroneously earlier than the legislation was finalized. In case you obtain a 1099-Okay within the mail for a small quantity (e.g., $800), do not ignore it. You could file a return that lists this earnings after which “zero it out” with a corresponding adjustment. In case you simply trash the faulty type, the IRS automated underreporter system (AUR) will flag your return for lacking earnings.
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 yr. That’s absolutely taxable unusual earnings. Many seniors overlook this manner as a result of they’re used to incomes $50 a yr. Lacking this manner is the #1 cause for “Math Error” notices in 2026, as banks report this knowledge on to the IRS.
Don’t Depend on “Final 12 months’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 faulty 1099-Okay this yr? Go away a remark beneath—inform us the way you fastened it!
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