Elderly and Disabled Senior Tax Credit
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 eFile.com tax software will apply the correct standard deductions for your you are entitled for as a senior. Learn more about 2022 standard deductions by filing status.
If your only income is Social Security, disability, or other nontaxable income, see details on Stimulus checks if you do not normally file.
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 Tax Year 2022 OR you were under age 65 as of 12/31/2022 and all 3 statements below are true:
- You retired on disability before Dec. 31 and you were permanently and totally disabled at the start of retirement.
- You received total disability taxable income for 2022.
- You are under age 65, but you retired on total and permanent disability and received taxable disability income, but you have not yet reached mandatory retirement age as of Jan. 1, 2023 or the new tax year.
- 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.
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.
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.
Head of Household,
MFJ & One Spouse
MFJ & Both Spouses
*And you lived apart from your spouse for all of 2022.
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.
TurboTax® is a registered trademark of Intuit, Inc.
H&R Block® is a registered trademark of HRB Innovations, Inc.