Tax Credits Pages

Elderly and Disabled Senior Tax Credit

If you are 65 or over as of the end of the year, eFile will complete Form 1040-SR and Schedule R (form and instructions) for you when you prepare your taxes on Simply eFileIT and we do all the tax math for you. IT = is Income Taxes: PrepareIT yourself, but not alone. Form 1040-SR is technically an alternative for using Form 1040 for taxpayers who are age 65 or older as of Dec. 31 of the given tax year. IRS Form 1040-SR uses the same schedules and instructions as Form 1040 does.

On this page:

If you or someone you know has a print disability (reading, comprehension, etc.), the IRS has created Form 9000, Alternative Media Preference. This allows taxpayers to elect to receive IRS notices as an alternative format, such as Braille, audio, electronic, or larger print. This form can be attached to your Form 1040 or 1040-SR and e-filed with your tax return or it can be mailed separately.

Generally, the elderly or disabled tax credit ranges between $3,750 and $7,500; it is 15% of the initial amount, less the total of nontaxable social security benefits and certain other nontaxable pensions, annuities, or disability benefits you've received. 50% of your adjusted gross income will be added and less the AGI limitation amount. In addition, the tax software will apply the correct standard deductions that you are entitled for as a senior. Learn more about standard deductions by filing status.

To claim the elderly or disabled tax credit, simply start your return on On the Name & Address screen, you can enter your date of birth and filing status and eFile will begin calculating your credit. Once you enter your income and other details, your calculation for your credit will be completed for you and added to your return.

Start Your 1040 or 1040-SR Return Now

eFile app instructions:

If your only income is Social Security, disability, or other nontaxable income, see details on stimulus checks if you do not normally file. You can only claim these by filing back taxes for the Recovery Rebate Credit.

Over 65 or Disabled Filing Taxes

Is there a tax credit for the elderly or disabled? Yes; here are the requirements to qualify for the Elderly and Disabled Tax Credit:

  • You must be a U.S. citizen or resident alien.
  • You must be 65 years of age as of December 31 for the tax year in question OR you were under age 65 as of the end of the year, but all statements below are true:
    • You retired on total and permanent disability before Dec. 31.
    • You received total disability taxable income.
  • Your filing status also plays a role; for example, if you are married, you must file a Married Filing Joint return to take the tax credit for the elderly and disabled. You may also take the tax credit if you file as Head of Household.
  • Your AGI must be under certain limits - refer to the table below.

Find more detailed information on Elderly and Disabled Tax Credits via IRS Publication 524 and see details for taxpayers with disabilities in IRS Publication 907.

The Credit of the Elderly or the Disabled is a nonrefundable tax credit, meaning it will not generate a tax refund and is only used to offset your taxes owed. You can claim this tax credit if you generate taxable income - see how much you need to make in order to file taxes.

You must obtain a physician's certification stating that you cannot engage in gainful activity because of your mental or physical condition and that the condition has lasted, or is expected to last, continuously for 12 months or more or that the condition is expected to result in death.

Even if you meet all the qualifications detailed above, you may still be ineligible for the tax credit if your taxable income exceeds set limitations or your nontaxable income is excessive. Listed below, by filing status, are the various income restraints.

If you receive disability benefits, such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), then these benefits are generally nontaxable. If you have other income in addition to this income, you may need to file taxes for that income.

Credit Amounts

How much do I have to make to claim the Credit for the Elderly or the Disabled? There are some income limits which can be found in the table below organized by filing status, adjusted gross income, and nontaxable income. Tax-free income, such as Social Security income or tax-free retirement income, is the amount in the third column of the table below.

  • MFJ = Married Filing Jointly
  • MFS = Married Filing Separately.
Filing Status
Head of Household,
MFJ & One Spouse
MFJ & Both Spouses

*And you lived apart from your spouse for all of the year.

The eFile Tax App will calculate and report the maximum amount of the credit you are entitled to by law - sign up free here. To get a better understanding of your tax situation, see the examples below.

Example 1: A 70-year-old single taxpayer works part-time as a sales associate. The taxpayer earns $10,000 at the end of the year and files taxes, including the W-2 reporting their work from this job. Additionally, the taxpayer is given $4,000 annually from Social Security. Because both the earned income and unearned income are under the AGI thresholds, the taxpayer is entitled to the full amount of the credit. The exact credit amount is found by following a mathematic equation based on Schedule R which the eFile Tax App will calculate for you - eFileIT.

Example 2: A married couple filing jointly, where one spouse is 67 and one is 63, is filing taxes based on one of their incomes from working a part-time job. The spouse who works earned $28,000 from work while both collect social security and retirement, totaling $15,000 annually. Because both of these incomes are over the threshold amounts, this means they do not qualify for the nonrefundable tax credit.

This tax credit for the disabled or elderly can only be claimed with earned income. Since it is nonrefundable, we recommend adjusting your withholding via Form W-4 so you can maximize the credit you claim.

ABLE Accounts

An ABLE account (Achieving a Better Life Experience) is a tax-advantaged savings account geared towards those with disabilities and their families. The purpose of this account is to allow you to fund disability expenses without having any effect on your public benefits (SSI, SSDI, Medicaid, etc.). When you contribute money to this account, the investment can grow tax-free as the contributions as made with post-tax dollars. This means that contributions to your ABLE account are not tax deductible, but are not taxed when you take money out to spend on qualifying expenses. This is similar to a 529 college savings plan or a health savings account.

You may consider opening an ABLE account if you, your spouse, your dependent, or someone else in your family relies on public benefits for income. These benefits are geared towards the lower classes which is why an ABLE account is a beneficial savings tool for those with less income. Establishing an ABLE account does not largely affect your eligibility for SSI, Medicaid, or other similar programs.

Each year, there is a limit on how much can be contributed to this account - see the limits by year in the table below.

Tax Year

ABLE Account Eligibility, Contributions

To be eligible for an ABLE account, you must have an age of onset of disability prior to turning 26 - in other words, you must become disabled at age 25 or younger and be expected to remain in that state for life. This significant disability generally makes you eligible for disability benefits. You do not necessarily need to be a recipient of SSI or SSDI if you meet the age restriction and other criteria for the state of your disability. If you become disabled before age 26, then you are eligible to make contributions through the rest of your life.

Important: beginning on January 1, 2026, this age is adjusted to 46; you must have become disabled by this age in order to qualify to open an ABLE account.

You can only have one account per eligible individual. Each year, there is a limit on how much post-tax dollars can be contributed to an ABLE account. You and/or your family can contribute up to $18,000 to the ABLE account; contributions can come from you, friends or family, a Special Needs/Pooled Income Trust, or a 529 College Savings Account rollover. If you work and do not participate in a retirement plan offered by your employer, you can contribute an additional $14,580 to the account.

You can save up to $100,000 to your ABLE account and this does not affect your SSI; some plan limits between $235,000 and $596,925, depending on the plan and your state. Amounts up to your plan limit do not affect eligibility for:

  • Social Security and Disability Insurance or SSDI
  • Housing Assistance or Housing and Urban Development programs or HUD
  • Supplemental Nutrition and Assistance Program or SNAP
  • Free Application for Federal Student Aid or FAFSA
  • Medicare (A, B, C, and D) Medicare Savings Programs, and Extra Help
  • Any Medicaid benefit which includes Medicaid waiver services.

Important: saving over the $100,000 limit will suspend your SSI cash benefits.

ABLE Account Details

In order to use the funds in your ABLE account and not pay taxes on withdrawals or payments, it must be used to pay for qualified disability expenses. These includes any purchase or expense related to the designated beneficiary due to living with disabilities. These could be food, transportation, housing, assistive technology, healthcare expenses, and other purchases used to help improve the quality of life for the individual.

Many states establish programs to help the disabled; the ABLE account can be established regardless of which state you reside. This means that if you state does not offer an ABLE program, you can enroll in other state program as long as they accept nonresident applications which most do. Currently, all states offer an ABLE program, but Idaho, North Dakota, South Dakota, and Wisconsin have inactive programs.

For a full list of active ABLE programs by state, open the state page on the ABLE NRC website .

Once you open your account, make regular contributions as you are able to in order to build up your savings and allow them to grow tax-free.