The credit for the elderly or disabled is a non-refundable tax credit that is available to qualifying individuals who are over the age 65 or who are disabled.
Requirements to Claim Credit
- You must be a U.S. citizen or resident alien.
- You were age 65 or older at the end of the current tax year, or
- You were under age 65 at the end of the current tax year, and
- You retired on permanent and total disability.
- You received taxable disability income for the current tax year.
- You had not reached mandatory retirement age on January 1 of the current tax year.
- You have a physicians statement certifying that you were permanently and totally disabled at the time of retirement.
Qualifying Disability Income
- The income is paid under your employer's accident, health, or pension plan.
- The income is included in your income as wages, or instead of wages, during the time you are absent from work due to permanent and total disability.
Non-Qualifying Disability Income
- Payments received from a plan that does not provide disability retirement.
- Lump-sum payments for accrued annual leave that you received when retiring on disability.
- Amounts that are received after reaching your employer's mandatory retirement age, at which you would have retired if you had not become disabled.
Income Limitations
Income limitations are based on your filing status and whether both spouses qualify for the credit if married filing jointly.
- If your filing status is single, head of household, or qualifying widow(er) with dependent child, you must have adjusted gross income (AGI) of $17,499 or less and cannot have more than $4,999 in nontaxable social security and other nontaxable pension(s) combined.
- Married filing jointly filing status with both spouses qualifying for the credit must have AGI of $24,999 or less and cannot have more than $4,999 in nontaxable social security and other nontaxable pension(s) combined.
- Married filing jointly filing status with only one spouse qualifying for the credit must have AGI of $19,999 or less and cannot have more than $4,999 in nontaxable social security and other nontaxable pension(s) combined.
- Married filing separately filing status and did not live with spouse the entire year must have AGI of $12,499 or less and cannot have more than $3,749 in in nontaxable social security and other nontaxable pension(s) combined.
For more information see IRS Publication 524.
