Feature Articles:
Taxes
Credit for the Elderly or the Disabled
Reviewed and used with special permission from the IRS by: Brenda Procter, M.S., State Specialist & Instructor Personal Financial Planning, University of Missouri Extension
You may be able to take the Credit for the Elderly or
the Disabled if you were age 65 or older at the end of
2005, or if you are retired on permanent and total
disability. Like any other tax credit, it’s a
dollar-for-dollar reduction of your tax bill, with a
maximum amount of $1,125.
You can take the credit for the elderly or the disabled
if:
- You are a Qualified Individual
- Your Adjusted Gross Income is less than specific limits depending on your filing status
- Your Nontaxable Income from Social Security or other nontaxable pension is less than specific limits depending on your filing status
Generally, you are a qualified individual for this
credit if you are a U.S. citizen or resident at the
end of the tax year and you are age 65 or older.
Taxpayers younger than 65 qualify if they are
retired on permanent and total disability, received
taxable disability income, and did not reach
mandatory retirement age before the beginning of the
tax year.
Even if you do not retire formally, you are
considered retired on disability when you have
stopped working because of your disability.
If you are under 65, you must have your physician
complete a statement certifying that you were
permanently and totally disabled on the date you
retired. You do not have to file this statement with
your tax return, but you must keep it for your
records.
Use Schedule R, Form 1040, or Schedule 3, Form
1040A, to compute the credit. You cannot take the
credit if you file Form 1040EZ.
For more information, including limits on AGI and
Nontaxable Income, see IRS Publication 524, Credit
for the Elderly or the Disabled, which you may
obtain from IRS.gov
or by calling the IRS at 1-800-TAX-FORM
(1-800-829-3676).
Source: IRS TAX TIP 2006-47
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Last update: Wednesday, March 12, 2008
