The IRS just handed retirees a massive tax bill for 2026 and most people have no idea it’s coming.
Many Americans assume taxes go down in retirement, but with the new 2026 tax brackets, the senior bonus deduction, Medicare IRMAA cliffs, and updated Social Security taxation rules, that assumption can cost you tens of thousands of dollars in stealth taxes.
In this video, CPA and Certified Private Wealth Advisor Stephen Lee breaks down exactly how the 2026 retirement tax rules work and why income timing, not market returns, is the biggest source of financial stress in retirement.
You’ll learn how the new senior bonus deduction works, including the additional $6,000 deduction for individuals age 65 and older and how married couples can stack deductions to shield up to $46,700 of income from taxes. We also cover the phase-out rules that quietly claw back these benefits once your income crosses certain thresholds.
This video also explains the updated Social Security washout math and why the new senior bonus deduction can help make Social Security benefits partially or even completely tax-free until income pushes you into dangerous tax and Medicare penalty zones.
We also cover the expanded SALT deduction for 2026, which raises the cap from $10,000 to $40,400 for eligible taxpayers, a major change for homeowners in high-tax states. Business owners will also learn why the pass-through entity tax workaround still matters and how it can bypass SALT limitations.
One of the biggest retirement landmines discussed is Medicare IRMAA. Because Medicare premiums use a two-year lookback, income spikes from years earlier can double your premiums overnight. You’ll learn when and how to file Form SSA-44 to reduce Medicare surcharges after retirement, loss of income, or the death of a spouse.
Finally, outlined in the video is a clear four-step retirement tax strategy for 2026, including income audits, Medicare planning, SALT optimization, and income-shifting strategies like Roth conversions, qualified charitable distributions, and donor-advised funds.
If you’re retired, approaching retirement, or planning for tax-efficient income in 2026, this video is essential. Proactive planning is no longer optional, it is the difference between keeping your savings and handing them back to the IRS.
If you have questions, drop them in the comments below, and here’s to a more tax-efficient 2026.
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4 min