If you really want to see a silver lining, then retirement is one that comes with getting older. While other things in your life may slow down, one very big advantage that comes when you retire is the tax breaks. After all, the taxes that you have paid your whole life were dependent on your income when you were still working. Now, you can enjoy the tax breaks of a much lower income bracket when you’re retired.

Here are some senior tax breaks for retirees that can help you look forward to retirement:

1. Standard deduction can be used to your advantage
Once you get older, the most significant senior tax breaks for retirees is that you would not need to pay as many taxes on the income you generate. The IRS (Internal Revenue Service) gives you a provision to opt for an additional standard deduction after you turn 65 years. For single filers, adding $1,600 is the way to go. For couples, the amount is $1300 per person. The only major criterion is that the claimant should be aged 65 years. Though, if you turn 65 years on January 1, December 31 too counts so you do not need to worry about waiting for one more year to claim these standard deductions.

2. Tax benefits on house sale
This is one of the major senior tax breaks for retirees that most people actually either forget about or are unaware of. If you have lived in your home for years, you might consider selling it in case you cannot afford heavy maintenance bills without a regular income. Now, you can get good money on your home and also not pay taxes on the profit margin. There are some caps on the tax saving but those are much higher at around $250,000 and above. Still, it is a huge saving.

3. You may be exempt from paying social security taxes
The formula for this may seem complicated but can be used to your advantage. You need to add up all your income from all different sources, including taxable retirement earnings other than social security. Then, to this amount add half the amount that you collected in social security benefits. If this total income and half the social security is less than $25,000 for single individuals, widow/widower or the head of household, then you would not need to add this to your social security in your taxable income. For married couples filing a joint return, the limit can go up to $32,000 for calculating the social security exemption. That is a huge saving and one of the major senior tax breaks for retirees that you must keep in mind.

Different states have different senior tax breaks for retirees. It is advisable to find out what your state offers so that you can make a conscious decision before financially planning your retirement there.