6 Tax Credits Boomers Keep Missing Out On

You’ve spent decades working, saving, and planning. Retirement should be your reward. But many baby boomers leave money on the table every year—money they’ve already earned.

That’s because tax credits are often overlooked. They’re not flashy. They’re buried in tax forms or hidden under vague IRS language. Still, they can make a meaningful difference, especially in retirement.

These six tax credits are especially valuable for older Americans. Some help with living costs. Others reward continued education or energy-saving improvements. Most don’t get the attention they deserve.

Let’s walk through the credits boomers often miss—and why they’re worth a second look.

The Credit for the Elderly or the Disabled

This credit has been around for years. Yet, it’s frequently missed. Why? Because eligibility depends on several IRS conditions that can confuse even seasoned filers.

You may qualify if you're over age 65. Some younger retirees with permanent disabilities may also be eligible. But income limits apply. Your adjusted gross income (AGI) and nontaxable Social Security benefits must fall under a specific threshold.

If you're single and your AGI is below $17,500, you may qualify. For married couples filing jointly, the limits are slightly higher. However, if you receive too much in nontaxable income—like certain pensions or Social Security—you might be excluded.

You must file Schedule R with your tax return to claim this credit. It’s not automatic. That’s where many boomers miss out.

What’s the benefit? You can claim up to $7,500. That’s real money for those living on fixed incomes. If you're using a tax preparer, ask directly about Schedule R. If you're filing solo, double-check the form’s instructions.

The Saver’s Credit (Yes, Even in Retirement)

Also called the Retirement Savings Contributions Credit, this one surprises people. Many think it's only for younger workers. Not true.

If you’re still making contributions to a traditional or Roth IRA—even after age 60—you might qualify. The Saver’s Credit gives you a bonus for saving. You get a credit worth up to $1,000 ($2,000 if married and filing jointly).

This is not a deduction. It’s a direct credit. That means it reduces your tax bill dollar-for-dollar. You could owe less or even get a refund.

Income limits apply here too. For the 2025 tax year, single filers must earn less than $36,500. Married couples must earn less than $73,000. The lower your income, the larger your credit.

It’s ideal for part-time workers in retirement or those doing gig work. Even a small contribution to a retirement account can trigger eligibility.

Are you drawing Social Security but still hustling? Don’t miss this one. It’s a reward for staying engaged and financially proactive.

The Energy Efficient Home Improvement Credit

Boomers love a good home upgrade. But many don’t know Uncle Sam wants to help pay for it—if it saves energy.

This credit covers upgrades like new insulation, windows, doors, HVAC systems, heat pumps, and more. It's part of the government’s push toward energy efficiency.

As of recent updates, the credit now covers 30% of qualifying improvement costs. That can mean hundreds or even thousands in tax savings.

Want to replace your old water heater? Install solar panels? Add better attic insulation? These could qualify.

There’s an annual cap of $1,200 for most improvements. But if you install heat pumps or biomass stoves, the cap rises to $2,000. It resets each year—so you can spread projects over time.

To qualify, keep all receipts. Save manufacturer certifications. And file IRS Form 5695 with your return.

This isn’t just about going green. It’s about spending smarter—and getting rewarded for modernizing your home.

The Dependent Care Credit (For Grandkids or Adult Children)

Retirement doesn’t always mean quiet time. For many boomers, it means stepping into a caregiving role again—often unexpectedly.

Maybe you’re helping raise your grandchildren. Maybe an adult child with special needs moved back in. These situations can bring serious financial strain.

The Dependent Care Credit can help. If you’re paying for daycare, after-school programs, or in-home care for a dependent, you could qualify.

You must earn some income to claim it—even part-time work counts. This rule exists because the credit is meant to support working caregivers.

The credit covers up to 35% of qualifying care expenses. For one dependent, you can claim up to $3,000 in expenses. For two or more, it’s $6,000.

Don’t assume you’re ineligible because of age. If you work and pay for dependent care, ask your tax advisor about this credit.

Boomers often give generously without expecting support. But when the IRS offers help—take it. You’ve earned that right.

The American Opportunity and Lifetime Learning Credits

Retirement is the perfect time to learn something new. But continuing education isn’t just for self-improvement—it could lower your taxes, too.

The American Opportunity Credit covers college tuition and certain education expenses. It’s mainly for undergraduates. But if you’re helping a child or grandchild pay for school, this credit might apply.

The Lifetime Learning Credit is broader. It helps with career courses, certifications, or continuing education—no age limit, no enrollment status required.

Let’s say you take an online course to sharpen your bookkeeping skills. Or you enroll in a university’s continuing education program. The Lifetime Learning Credit can refund 20% of up to $10,000 in expenses per year.

These credits phase out at higher income levels. But many retirees live on modest fixed incomes, making them eligible.

Make sure to get Form 1098-T from the school. And keep records of tuition payments, books, or required materials.

Education shouldn’t stop at retirement. And if the government wants to help foot the bill, take them up on it.

The Property Tax Credit (State-Specific)

Property taxes are a thorn in the side of many boomers. Even with a paid-off mortgage, those taxes keep coming.

Thankfully, many states offer property tax relief programs for older adults. These are often called “circuit breaker” programs. They cap your tax bill based on income.

Some states refund a portion of your taxes. Others freeze tax rates or delay increases. New Jersey, Missouri, and Wisconsin are just a few examples.

The rules vary by state. Some only apply if you meet income and age limits. Others consider total household income, not just taxable income.

You must apply separately—these credits aren’t part of your federal return. Usually, you submit paperwork through your local assessor’s office or state revenue department.

Are you unsure if your state offers this? Check your state’s department of taxation or speak to a local tax preparer.

Property taxes eat into retirement budgets fast. Don’t let this expense drain your savings when relief may be available.

Conclusion

Retirement should come with fewer worries—not more. Yet too many boomers skip over tax credits that could cushion their budgets and boost their peace of mind.

From home upgrades to caregiving expenses, from retirement savings incentives to education perks—these credits were made with you in mind.

They won’t solve every financial challenge. But they add up. Every dollar saved is a dollar you can reinvest into your health, home, or hobbies.

Don't wait until tax season stress kicks in. Review these credits today. Circle the ones that fit your life. Bring them up with your accountant. If you're filing solo, use tax software that flags these opportunities.

You worked hard for this stage of life. These tax breaks are a quiet thank-you. Make sure you cash them in.