The Credit for the Elderly or Disabled is a nonrefundable federal tax credit that may reduce the amount of income tax you owe if you're age 65 or older or permanently and totally disabled. The credit is figured on Schedule R (Form 1040).
Because this is a nonrefundable credit, it can lower your tax bill to zero, but it won't increase your refund beyond the taxes you owe.
Who Qualifies for the Credit?
You may qualify for the Credit for the Elderly or Disabled if either of the following applies:
Age 65 or Older
You were age 65 or older by the end of the tax year.
Permanently and Totally Disabled
If you were under age 65 at the end of the tax year, you may still qualify if all of the following are true:
- You were permanently and totally disabled when you retired.
- You received taxable disability income during the tax year.
- You had not reached your employer's mandatory retirement age before January 1 of the tax year.
In general, you're considered permanently and totally disabled if a physical or mental condition prevents you from engaging in substantial gainful activity, and the condition is expected to last continuously for at least one year or result in death.
Filing Status Restrictions
If your filing status is Married Filing Separately, you generally can't claim this credit if you lived with your spouse at any time during the tax year.
However, you may still qualify if you and your spouse lived apart for the entire year and meet all other eligibility requirements.
Income Limits
To claim the credit, both your adjusted gross income (AGI) and certain nontaxable income must be below the limits for your filing status.
AGI Limits
You can't claim the credit if your AGI is:
- $17,500 or more if you're Single, Head of Household, or a Qualifying Surviving Spouse.
- $20,000 or more if you're Married Filing Jointly and only one spouse qualifies.
- $25,000 or more if you're Married Filing Jointly and both spouses qualify.
- $12,500 or more if you're Married Filing Separately and lived apart from your spouse for the entire year.
Nontaxable Income Limits
You can't claim the credit if your total nontaxable income is:
- $5,000 or more if you're Single, Head of Household, or a Qualifying Surviving Spouse.
- $5,000 or more if you're Married Filing Jointly and only one spouse qualifies.
- $7,500 or more if you're Married Filing Jointly and both spouses qualify.
- $3,750 or more if you're Married Filing Separately and lived apart from your spouse for the entire year.
What Counts as Nontaxable Income?
For this credit, nontaxable income generally includes:
- Social Security benefits
- Nontaxable pensions
- Nontaxable annuities
- Certain disability income
If you're close to the income limits, it's worth reviewing all sources of income carefully, since even a small increase can affect your eligibility.
How to Claim the Credit
If you qualify, our software will help you complete Schedule R and calculate the Credit for the Elderly or Disabled.
To enter your information:
- Go to Federal.
- Select Deductions and then choose to select your forms and continue
- Choose Credits.
- Select Credit for the Elderly or the Disabled.
If you're claiming the credit based on disability, you'll also need to complete Part II of Schedule R to verify your disability status.
What You'll Need
Before you start, gather the following information:
- Details about any disability income you received, if applicable.
- Records of nontaxable Social Security benefits, pensions, or annuities.
- Your adjusted gross income (AGI).
- Documentation related to your retirement and disability status, if required.
Having these records ready can make the filing process quicker and help ensure your credit is calculated accurately.
Additional Information
For more details about the Credit for the Elderly or Disabled, see the following IRS resources:
- IRS Credit for the Elderly or Disabled
- Publication 524 – Credit for the Elderly or the Disabled
- Schedule R Instructions
This credit can be especially valuable for older taxpayers and individuals living with long-term disabilities. Even though the income limits are relatively low, it's worth checking your eligibility if you meet the age or disability requirements, as the credit could reduce your tax bill and help you keep more of your money.