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5 Tax Paperwork Retirees Usually Overlook Till Submitting Time

February 7, 2026

5 Tax Paperwork Retirees Usually Overlook Till Submitting Time — Picture Supply: Pexels

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 rapidly. However for the 2026 submitting season (protecting the 2025 tax 12 months), the foundations have modified considerably as a result of “One Huge Stunning Invoice Act” (OBBBA) and shifting financial situations.

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 12 months, you possibly can miss out on hundreds 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 Form 1098 out of your mortgage lender (when you nonetheless have a mortgage) or the precise county tax receipts when you pay immediately. In contrast to earlier years the place this deduction was capped out early, your full property tax invoice would possibly now be deductible. When you’ve got been shredding these payments pondering “I take the usual anyway,” it’s good 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) immediately out of your IRA to a charity, you prevented paying taxes on that cash. Nonetheless, 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 totally taxable.

Whereas a brand new “Code Y” was launched for 2025, its use is non-obligatory 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 have to 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 total quantity.

3. The “Senior Bonus” Revenue Worksheet

New for the 2025 tax 12 months is the “Senior Bonus” deduction—an additional customary deduction enhance for filers over age 65. Nonetheless, this bonus is means-tested, which means it vanishes in case your earnings is just too excessive.

You received’t obtain a particular type for this, however it’s good to compile a provisional income 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 Revenue (MAGI) precisely by gathering all earnings sources, you would possibly declare a bonus you aren’t entitled to, triggering an automated 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 nervous many informal sellers.

Whereas most retirees received’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. In case you obtain a 1099-Ok within the mail for a small quantity (e.g., $800), do not ignore it. You have to 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 major tax invoice.

Look ahead to Form 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 totally taxable unusual earnings. Many seniors overlook this manner as a result of they’re used to incomes $50 a 12 months. Lacking this manner is the #1 purpose for “Math Error” notices in 2026, as banks report this information on to the IRS.