Am I Eligible to Take the Tax Credit for the Elderly or Disabled?
If you are elderly or disabled, then you may be entitled to a tax credit. If you qualify, and if you are required to file a tax return, then you may be able to reduce the tax you owe by taking advantage of this credit.
Who qualifies for the credit for the elderly or the disabled, and how do I figure the credit?
The elderly or disabled credit is not a tax credit that you can claim on your tax return because you care or house an elderly or disabled relative. However, you may be able to claim this person as a dependent.
For information on that, see the article 5 Most Frequently Asked Questions About Claiming a Dependent, under the subheading: Can I claim my mother or father? See also IRS publication 501, Exemptions, Standard Deduction, and Filing Information.
You may be able to take the credit for the elderly or the disabled if you are age 65 or older, or if you are under 65 but retired on permanent and total disability and have taxable disability income.
According to the IRS, you are considered retired on disability for tax purposes if you were permanently and totally disabled when you retired, and you retired on disability before the close of the tax year.
Even if you do not retire formally, you may be considered retired on disability when you have stopped working if you could no longer work because of your disability.
In addition to the qualifying rules above, your income must be under certain thresholds in order to claim the credit.
For tax year 2010, income limits were subject to the following ceilings:
If you file Single or Head of household, you cannot take the credit if your Adjusted Gross Income (AGI) is equal to or more than $17,500, or if the total of your nontaxable social security and other nontaxable pension income(s) is equal to or more than $5,000.
If you file jointly with your spouse and you both qualify based on your age or disability income, then your combined AGI must be less than $25,000 and your other nontaxable income sources must be less than $7,500. If you file separately from your spouse, halve these figures.
If you file jointly with your spouse but only one of you qualify based on the age or disability income, then your joint AGI must be less than $20,000 and your other nontaxable income sources must be less than $5,000.
In order to figure the amount of the credit you are eligible for, use the worksheets in IRS Publication 524, Credit for the Elderly or Disabled. Attach Schedule-R to your tax return if you are claiming the credit, and write in the amount you are eligible for on Line 53 of your Form 1040.
The elderly and dependent care credit is a non-refundable tax credit, meaning it can reduce the amount of tax you owe down to zero, but it cannot generate a refund for you.
More from this Contributor:
Tax filing requirements for retired taxpayers
How to obtain IRS forms and publications
Can't pay your taxes? You may qualify for financial hardship
Who qualifies for the credit for the elderly or the disabled, and how do I figure the credit?
The elderly or disabled credit is not a tax credit that you can claim on your tax return because you care or house an elderly or disabled relative. However, you may be able to claim this person as a dependent.
For information on that, see the article 5 Most Frequently Asked Questions About Claiming a Dependent, under the subheading: Can I claim my mother or father? See also IRS publication 501, Exemptions, Standard Deduction, and Filing Information.
You may be able to take the credit for the elderly or the disabled if you are age 65 or older, or if you are under 65 but retired on permanent and total disability and have taxable disability income.
According to the IRS, you are considered retired on disability for tax purposes if you were permanently and totally disabled when you retired, and you retired on disability before the close of the tax year.
Even if you do not retire formally, you may be considered retired on disability when you have stopped working if you could no longer work because of your disability.
In addition to the qualifying rules above, your income must be under certain thresholds in order to claim the credit.
For tax year 2010, income limits were subject to the following ceilings:
If you file Single or Head of household, you cannot take the credit if your Adjusted Gross Income (AGI) is equal to or more than $17,500, or if the total of your nontaxable social security and other nontaxable pension income(s) is equal to or more than $5,000.
If you file jointly with your spouse and you both qualify based on your age or disability income, then your combined AGI must be less than $25,000 and your other nontaxable income sources must be less than $7,500. If you file separately from your spouse, halve these figures.
If you file jointly with your spouse but only one of you qualify based on the age or disability income, then your joint AGI must be less than $20,000 and your other nontaxable income sources must be less than $5,000.
In order to figure the amount of the credit you are eligible for, use the worksheets in IRS Publication 524, Credit for the Elderly or Disabled. Attach Schedule-R to your tax return if you are claiming the credit, and write in the amount you are eligible for on Line 53 of your Form 1040.
The elderly and dependent care credit is a non-refundable tax credit, meaning it can reduce the amount of tax you owe down to zero, but it cannot generate a refund for you.
More from this Contributor:
Tax filing requirements for retired taxpayers
How to obtain IRS forms and publications
Can't pay your taxes? You may qualify for financial hardship
Published by James Skye - Featured Contributor in Business & Finance
As a 15-year IRS employee with a strong freelance background, my education and experience affords me the opportunity to contribute articles relating to personal finances and taxes. I also enjoy writing relig... View profile
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