10 Breaks Retirees Get That Working People Don't



A whole new set of deductions are available to taxpayers 65 and older. First, the standard deduction increases by $1,250 for single seniors or $1,000 if you're married or a surviving spouse.

If you itemize, don't forget to deduct long-term care insurance premiums.

Also, Social Security disbursements aren't taxed at the same rate as income. Instead, only between 0 and 85 percent is taxed, depending on a senior's total amount of income. To see how your Social Security benefits are taxed, visit the IRS' frequently asked questions page.

Your state taxes are another (long) story. For example, Kentucky doesn't tax Social Security benefits, while West Virginia does. Pennsylvania doesn't tax pension income, while Ohio does. New Hampshire has no sales or income tax, while Vermont has both. And Virginia has no estate tax, while North Carolina does [source: Mannes].

By the time you qualify for senior tax breaks, you've been filing long enough to know that taxes and tax law are more complicated than the minotaur's maze. Luckily, professional tax advice is deductible and often discounted for seniors.