2 questions.

ya_berezka — Wed, 22 Oct 2025 17:07:31 GMT

HI,

I am retired and should pay 4 installment payments. I paid 2 of those.

1. Should I pay the rest?

2. Is there any changes in tax rules for retired people?

Re: 2 questions.

SwapnaM — Mon, 27 Oct 2025 16:45:03 GMT

You should absolutely review your current tax situation and likely need to pay the remaining installments, or at least enough to satisfy the IRS "Safe Harbor" rules.

You must make estimated tax payments if both of the following apply:

You expect to owe at least $1,000 in federal income tax for the year after subtracting withholding and credits.
Your withholding and credits will be less than 90% of your 2025 tax liability or 100% of your 2024 tax liability.

If you expect to owe taxes, it’s best to make the remaining payments to avoid underpayment penalties.

You can still make the third and fourth payments (typically due September 15 and January 15) if you missed them.

Deduction for Seniors

New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
- The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
- Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
- The State and Local Tax (SALT) deduction cap increased from $10,000 to $40,000 (2025–2029).

IRS link: One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors

In summary, you should check your new, lower estimated tax liability based on the new $6,000 deduction for seniors. It may mean you owe less for the third and fourth installments than you originally calculated, but you still need to pay them to avoid a penalty.