Most seniors are aware of the standard and itemized deductions as they have been filing taxes for years and the perks only increase once they turn 65. However, certain overlooked expenses can be used to your advantage. With the help of the tax breaks for retirees and seniors mentioned in this article, you can save up on your taxes.

Medical and dental expenses
Seniors who itemize their deductions would be able to add another expense to it, but it does not mean that all the medical and dental expenses can be deducted. Firstly, deduct your out-of-pocket expenses, which can be done on the income taxes available on Schedule A, and then calculate your Adjusted Gross Income (AGI). The medical and dental expenses that exceed 7.5% of your AGI can be deducted, and you would be eligible for one of the most useful tax breaks for retirees and seniors.

Contributions to retirement accounts
For retired or semi-retired individuals, 401(k)s and retirement accounts are not out of limit, and you can still make tax-deductible contributions to these accounts. This is particularly helpful because most people live off their retirement account savings. To understand this better, keep in mind that an individual can contribute up to $6,000 annually to any Individual Retirement Account (IRA) and deduct this amount from the income tax they file. On the other hand, an individual over the age of 50 can contribute up to $7,000 every year.

Investment-related expenses
This is a lesser-known but typically one of the best tax breaks available for seniors and retirees. Money spent on investment-related expenses is taxed at a much lesser rate of around 15% and is independent of the taxes you pay for Medicare or Social Security. Also, if your investment-related expenses go above 2% of your AGI, you would be able to include these expenses in your itemized deductions. The expenses that are categorized in this include the following:

• Accounting fees
• Fees spent on attorneys
• Fees paid to financial planners
• Fees related to investment income

Business-related expenses
For retirees and seniors who own a business when they retire or plan on starting a business of their own, claiming business expenses is a tax break. It may be possible to deduct necessary and qualified expenses in such a scenario:

• Travel expenses related to business
• Business equipment
• Home office utility bills

Charitable contributions
If you have extra income from retirement and want to save up on taxes, you can go for charitable contributions. Charitable contributions in virtual cash up to $100,000 can be deducted from your total AGI, and you can deduct the fair market price from your tax filing if you donate property to an organization.

It is best to consult a tax expert who can help you understand the process and ensure that you use the tax breaks for seniors and retirees for the maximum benefits. These are helpful and can surely contribute toward your savings.