Credit for the Elderly or Disabled
Taxpayers who meet the qualifications (age, disability, income) can claim a credit of up to $1,124. The nonincome qualifications are:
The taxpayer was 65 or older on December 31; or,
The taxpayer was under age 65 and all three of the following are true.
Taxpayer retired on permanent disability.
Taxpayer received disability income.
Taxpayer had not reached mandatory retirement age on January 1.
A taxpayer next must consider income in computing a potential credit. The credit is computed on a base amount of:
$7,500 for married filing jointly taxpayers where both are over 65, ranging down to
$3,750 for married filing separately, or a taxpayer on disability under age 65.
The base amount is reduced when the AGI exceeds $25,000 for a married filing jointly where both qualify for the credit to $12,500 for married filing separately. The base amount is also reduced by the nontaxable portions of Social Security and pensions. The credit is 15% of the base amounts after the income reductions.
Schedule R (Form 1040) Credit for the Elderly or the Disabled is used to determine both eligibility and the amount of the credit. Go to Publication 17 and read Chapter 33: Credit for the Elderly or the Disabled.
