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Old 03-15-2007, 07:52 PM
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Claiming the Credit for the Elderly or the Disabled

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 2006, 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. Eligibility for the credit and the amount of the credit is subject to several maximum income limits.

You may be eligible for the credit for the elderly or the disabled if:
  • You are a Qualified Individual,

  • Your Adjusted Gross Income is less than specific limits ranging from $12,500 to $25,000 depending on your filing status, and

  • Your Nontaxable Income from Social Security or other nontaxable pension is less than specific limits ranging from $3,750 to $7,500 depending on your filing status.
Generally, you will satisfy the “qualified individual” requirement 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 may 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 Adjusted Gross Income and Nontaxable Income, see IRS Publication 524, Credit for the Elderly or the Disabled, which you may obtain from this web site or by calling the IRS at 800-TAX-FORM (800-829-3676).

Links:
  • Publication 524, Credit for the Elderly or the Disabled (PDF 140K)
  • Schedule R (Form 1040), Credit for the Elderly or the Disabled (PDF 54K)
  • Schedule R Instructions (PDF 29K)
  • Schedule 3, Credit for the Elderly or the Disabled for Form 1040A Filers (PDF 48K)
  • Schedule 3 Instructions (PDF 27K)
  • Tax Topic 603
Source: irs.gov



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