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Credits/Deductions for the Elderly and the Disabled

January 16, 2014

The tax credit for the elderly or the disabled can only be used by those who are 65 years or older, or by those who have retired on permanent or total disability by the end of 2013. Only U.S. citizens and resident aliens can claim the credit if they qualify for the above criteria. A nonresident alien needs to fulfill an extra qualifying factor: a taxpayer that was a nonresident at any time during 2013 needs to be filing as married filing jointly.

The credit depends on the filing status, age, and income of the qualifying taxpayer. If the filing status is married filing jointly, the credit is also based on the age and income of your spouse.

A disabled taxpayer can only claim this credit if:

  • The person cannot perform any substantial activity towards gain due to a physical or mental handicap.
  • The illness, mental or physical, or both, has persisted and is expected to continue for at least a year, or can lead to death.

The credit for the elderly and the disabled can be used only those whose adjusted gross income is less than these limits:

  • Single: $17,500
  • Married Filing Jointly: $20,000 if one spouse is eligible, or $25,000 if both the spouses are eligible
  • Married Filing Separately: $12,500
  • Head of Household: $17,500
  • Qualifying Widow(er): $17,500

The income limits for the credit for the elderly and the disabled also include the non-taxable income from Social Security benefits, pensions, annuities or disability income. To qualify for this credit, a taxpayer’s non-taxable income must be less than these limits:

  • Single, Head of Household or Qualifying Widow(er) with dependent child: $5,000
  • Married Filing Jointly: $5,000 if one spouse is eligible, and $7,500 if both spouses are eligible
  • Married Filing Separately, or if you lived apart from your spouse for the entire 2013: $3,750

Taxpayers may reduce their tax liability by using this credit when filing returns this tax season. Taxpayers that qualify can claim the credit on Form 1040 or 1040A. They may figure the credit on Schedule R on either of these forms. Be sure to check out Tax Defense Network’s Facebook for more information on tax credits.

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