In Blog, Taxes for Individuals

We’d all like less taxes to pay, so we try to take advantage of all the deductions and credits that we can. But our lives change, and the tax code changes, and it’s sometimes difficult to determine if we’re really on top of our tax-game. This post will focus on the tax credit for the elderly or disabled to determine if you’re eligible, and what the best way to structure your taxes around this credit might be.

If you’re 65 years of age or older, or retired and on “total and permanent” disability with taxable disability income (up to a certain limit) you may qualify. Use Schedule R – Form 1040A or 1040 to claim this tax credit.

65 Years Old + | Elderly Tax Credit

If you were at least 65 years old at the end of the tax year, eligibility depends on your filing status – if you’re married, you must file jointly with your spouse, or if you’re Head of Household and meet specific IRS requirements listed here. You must also not exceed certain adjusted gross income limits. For example, if you’re filing jointly and both spouses qualify, you must not make more than $25,000. This IRS guide specifically for seniors will help you with all of your tax needs from credits and deductions, life insurance, to retirement plan distributions.

Disability Tax Credit

If you are not over the age of 65, but you are retired and on permanent and total disability with taxable disability income, you may qualify. You have a “permanent and total” disability if you cannot do any substantial work to make money due to your mental or physical condition, and a doctor must certify that the condition has or will last for longer than 12 months, or will result in death. This IRS guide for the elderly and disabled will guide you through every detail you need to know to apply for the credit.

If you have been disabled as a veteran, and the VA (Dept. of Veterans Affairs) has certified your “permanent and total” disability, you can use VA Form 21-0172 in place of a doctor’s statement.
If you’d like help filing your tax return, want to make sure you’re not missing out on any tax credits or deductions, or have any questions in general, feel free to reach out and one of our tax professionals will be glad to speak with you. We also can help with financial statement preparation and filing.

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