Getting older can be hard and most people don’t really look forward to it, as they don’t have to work anymore. The idea of sitting at home and working on a personal project or taking up something you’re passionate about can sound appealing to some but the bills do start to pile up. The Internal Revenue Service (IRS) is sympathetic to your plight and has several breaks available to senior citizens when it comes to taxes.

Living on a fixed income can be difficult because of the economy, so it is important to take advantage of the deductions that are available. Let’s look at some of the tax deductions seniors and retirees are looking for in order to have a better life.:

1. Standard deduction

Many people can opt for the standard deduction if they don’t want to itemize their personal deductions which is present on the IRS Schedule A. Most people choose the standard deduction, especially after the Tax Cuts and Jobs Act, 2018 that effectively almost double the standard deduction. If personal deductions like charitable donations, hospital expenses, real estate taxes, or interest on home mortgages are less than the standard deduction, it would be wise to take the standard deduction instead. Seniors who are 65 and older are entitled to an even higher deduction and if their spouse is 65 and older. They can avail it while filing a joint return.

2. Medical costs and dental expenses

People often struggle to pay medical and dental costs. Fortunately, a portion of these expenses can be deducted. This option, however, is only available to you if you decide to itemize personal deductions. This covers premiums on your health insurance including Medicare, premiums on long term care insurance, out-of-pocket expenses, prescription medication, and nursing home care. After you decide to itemize your deductions, these dental and medical costs can be deducted from income tax on Schedule A of the tax returns filed. For example, in 2018, the limit was 7.5% of your AGI (adjusted gross income). That means that all expenses exceeding 7.5% of your AGI can be deducted from your income tax. If someone in 2018 was earning $100,000, then their expenses over $7,500 would be deductible. The limit could go up to 10% from 7.5% in a few years to come.

3. Donations to Charity

After retirement, many people think about giving back to society and any charitable donations or contributions are deductible if they are itemized. Cash donations of up to 60% of AGI are deductible each year. When the property is donated, the market value of that property can be deducted. Similarly, when a car, boat, or even an airplane is donated, the deductible amount is limited to the proceeds from the sale that the charitable organization obtains. It is important to note that these deductions are only possible if you itemize them. It is advisable to make most or all of your contributions in a single year so that they are enough deductions to itemize.

These are some of the tax deductions seniors and retirees can avail to manage their money.