What is the Elderly Tax Credit?

Posted by Kristen on March 21, 2013

What is the Elderly Tax Credit?

The elderly tax credit is called the Tax Credit for the Elderly and Disabled. It is a tax credit for individuals who are 65-years-old or older or on permanent disability.

How to Qualify for the Elderly Tax Credit

You qualify for this tax credit if you were 65-years-old or older at the end of 2012. According to the IRS, you are considered 65 one day before your actual birthday. For example, if you were born on May 5, according to the IRS to turned 65 May 4.

Disability Tax Credit

You also can qualify if you were under 65-years-old and the end of 2012 and you were retired on permanent disability, you received taxable disability income for 2012, and on January 1, 2012, you did not reach the mandatory retirement age. Even if you did not formally retire from your job, if you have stopped working because of a disability you can qualify. If you are under 65, you must have your doctor write a letter certifying that you are indeed permanently disabled on the date you claimed to retire. This statement is used during Schedule R. For more information, see the disability tax credit.

Where is the Tax Credit for Elderly and Disabled Used?

Use Schedule R on Form 1040 or 1040a to claim this credit.

What are Income Requirements of the Credit for Elderly and Disabled Tax Credit?

Even if you qualify, you cannot take this credit if your adjusted gross income is equal to or more than the following amounts for each filing status:

  • $17,500 for single, head of household, or qualifying widower with dependent child
  • $20,000 if you are married filing jointly and one spouse qualifies
  • $25,000 if you are married filing jointly and both spouses qualify
  • $12,500 if you are married filing separately and you lived apart from your spouse at all during the year of 2012

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