7. Standard deduction. This applies if you don't itemize your deductions (many older folks don't if they are no longer paying mortgage interest). Folks who are 65 and older by December 31 of the tax year are entitled to a higher standard deduction. Technically, you are considered 65 on the day before your 65^th birthday. For example, for the tax year 2009, you can take the higher standard deduction if you were born before January 2, 1945.

You get an additional $1,250 if you are single and an extra $1,000 (for each spouse older than 65) if you are married. You can also claim the higher deduction if only your spouse is older than 65 and you file a joint return.

To learn more about tax deductions, see Easy Ways to Lower Your Taxes, by Stephen Fishman (Nolo).