Millions of people over 50 have turned their expertise into consulting, freelancing, or small businesses. And guess what? The tax code actually rewards you for that.

The 2017 Tax Cuts and Jobs Act (TCJA), aka Trump’s big tax reform, included a massive business tax break that could still slash your tax bill today. But not for long. Some of these perks expire in 2025, so if you’re 50+ and self-employed, you need to act now to claim your share.

Let’s break it down—what’s still available, how it works, and why this tax break is a goldmine for entrepreneurs over 50.

What Is the Trump Business Tax Break?

Think of it like this: You earn $100,000 from your business. Normally, you’d be taxed on the full amount. But thanks to the Qualified Business Income (QBI) deduction, you can automatically deduct up to 20%—meaning you’re only taxed on $80,000 instead of $100,000.

Sounds good? That’s because it is. But let’s go deeper.

Who qualifies?

• Self-employed individuals (freelancers, consultants, coaches)

• LLCs, S-corps, sole proprietors (even if it’s just you)

• Small business owners who report pass-through income

• Side hustlers who make money outside their 9-to-5

Who doesn’t? If you run a C-Corp, sorry—you’re taxed differently. But keep reading because lower corporate tax rates still work in your favor.

Why This is a Game-Changer for People Over 50

• Many people start a business later in life. If that’s you, this tax break helps keep more profits in your pocket.

• Retirement income doesn’t qualify, but your business income does—perfect for semi-retirement side gigs.

• If you’re planning to retire soon, this deduction can delay the need to tap into retirement savings.

Bottom line? If you’re over 50 and earning money outside of a traditional job, the Trump business tax break is one of the most powerful ways to cut your taxes.

Corporate Tax Cuts – What’s Left for Business Owners?

Another major win from the 2017 tax reform? The corporate tax rate dropped from 35% to 21%.

If you own an LLC, S-Corp, or plan to incorporate, this lower tax rate is a big deal.

Why it matters if you’re 50+:

• If you pay yourself a salary + distributions, you can optimize your tax situation.

• You might save more by switching from a sole proprietorship to an LLC or S-Corp (consult a tax pro for specifics).

• This rate is still in effect but could change after 2025—so plan ahead.

Real Talk: If you’re making six figures or more in self-employment income, an LLC or S-Corp could be a game-changer. Lower tax rates mean more money for retirement, investing, or reinvesting in your business.

Bonus Depreciation & Equipment Write-Offs

Think tax breaks only apply to “big businesses”? Think again.

The Trump tax reform also included a 100% bonus depreciation rule—which means you can write off the full cost of equipment, software, or even vehicles in the year you buy them.

What qualifies?

• Laptops, cameras, printers (freelancers, take note)

• Office furniture (desks, chairs, storage units)

• Business vehicles (yes, even your car—if it’s used for work)

Example: If you buy a $5,000 laptop for your business, you can deduct the full $5,000 in the same year instead of spreading it out over several years. That’s instant savings.

Pro Tip: If you’re 50+ and upgrading your home office or business setup, 2025 is your deadline to maximize this write-off before it changes.

The Clock is Ticking – Will This Tax Break Last?

Let’s get real: Most of these tax perks could disappear after 2025 unless Congress decides to extend them.

Here’s where we stand:

• QBI Deduction (20% for small businesses) – Set to expire in 2025

• Lower corporate tax rate (21%) – May increase after 2025

• 100% bonus depreciation – Drops to 80% in 2025, then phases out

Translation: The tax breaks we just covered are temporary, and once they’re gone, they might not come back.

The Most Common Tax Breaks People Over 50 

Let’s get real—taxes are complicated. And if you’re 50 or older, the IRS is not going to call you up and remind you about the money you could be saving.

That’s why so many people overpay—because they simply don’t know what they don’t know. You’ve spent decades working, and now it’s time to keep more of what you earned.

State-Specific Retirement Income Exclusions

Your state could be either your biggest tax saver or your worst tax enemy. Some states still tax pensions, Social Security, and retirement income, while others give retirees a break.

These states fully exempt retirement income:

• Illinois

• Pennsylvania

• Mississippi

These states have zero income tax at all:

• Florida

• Texas

• Nevada

• Tennessee

Pro tip: If you’re thinking about moving after retirement, check how your new state taxes retirement income. The difference could mean thousands in savings every year.

Medical Expense Deduction – Bigger After 50

Getting older means higher medical bills—but the IRS actually cuts you some slack here.

• If your medical expenses exceed 7.5% of your adjusted gross income (AGI), they become tax-deductible.

• This includes prescriptions, surgeries, dental work, even mileage to doctor’s appointments.

HSA Superpower for 55+

If you have a Health Savings Account (HSA), once you hit 55, you can contribute an extra $1,000 per year—tax-free.

Why this matters: An HSA isn’t just for medical bills today—you can use it decades later to pay for healthcare in retirement, completely tax-free.

Property Tax Exemptions for Seniors

One of the most underrated tax breaks for people over 60? Property tax reductions.

• Many states offer lower property taxes for homeowners over 60 or 65.

• Some states even freeze property tax rates once you hit a certain age.

Why this is huge: Property taxes are one of the biggest costs in retirement. If your state offers exemptions or freezes, you could save thousands per year—for life.

The Saver’s Credit – Not Just for the Young

Think tax credits are just for young workers? Think again.

The Saver’s Credit gives you free tax money just for contributing to an IRA or 401(k).

How it works:

• If you contribute to a 401(k), Traditional IRA, or Roth IRA, you could get a credit worth up to $1,000 ($2,000 for couples).

• To qualify, your income must be below $73,000 (married) or $36,500 (single).

• This credit reduces your tax bill dollar-for-dollar—not just your taxable income.

Why this matters: If you’re still working after 50, even part-time, this credit is free money from the IRS.

Energy-Efficient Home Upgrades – New Perks in 2025

If you’re upgrading your home, don’t forget about energy tax credits—they’ve gotten way better thanks to the Inflation Reduction Act.

What qualifies for tax credits?

• Solar panels – Up to 30% of costs covered.

• Energy-efficient heat pumps, insulation, new windows – Big rebates available.

• EV Chargers – If you install one at home, you could get a federal credit.

Smart move: Even if you don’t itemize deductions, you can still claim these credits.

Planning Ahead – Tax Moves to Consider Before Retirement

If you’re approaching retirement, now’s the time to make tax-smart moves.

Adjust Withholding & Estimated Taxes

Biggest mistake retirees make? Paying too much in quarterly taxes because they don’t adjust their tax withholding.

• If you have multiple income sources (Social Security, pensions, 401(k) withdrawals), work with a tax pro to make sure you’re not overpaying.

Strategic Roth IRA Conversions in Low-Income Years

If you temporarily have a low-income year, consider converting a Traditional IRA to a Roth IRA.

• You’ll pay some taxes now—but then your money grows tax-free forever.

• Best time to convert? Between 50 and 70, before Required Minimum Distributions (RMDs) kick in.

Delaying Social Security Can Save Thousands in Taxes

Fact: Every year you delay Social Security after 62, your benefits increase by 8% per year—but also, less of your benefits will be taxed.

Strategy: If you can afford it, waiting until 70 means more monthly income—with less of it going to taxes.

Charitable Contributions & Donor-Advised Funds

Want to give to charity AND get a tax break?

• If you donate stock instead of cash, you avoid capital gains tax AND get a deduction.

• Setting up a donor-advised fund lets you control your donations while reducing your taxable income.

Take Action Now to Lock in These Tax Breaks

So, what’s the takeaway? You have more tax breaks available than you think. The IRS won’t remind you about these savings—but now you know. Use them, or lose them.