The IRS does not use "occupation" for anything that affects your tax due or refund. They only use occupation for statistics. So, you can use "retired" as an occupation if you want to. Otherwise, the IRS is not really interested in knowing that you are retired. The IRS just wants you to report your income---whatever kind of income that happens to be----W-2 income, investment income, self-employment income, retirement income, rental income, interest income, etc.etc.etc.
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