How to Claim the Federal Income Tax Credit for the Elderly or Disabled

You may be able to take the credit for the elderly or disabled on your federal income tax return if you are age 65 or older or if you are under age 65 and are totally and permanently disabled, and your income is not over a certain limit.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• A physician’s certification if you are totally and permanently disabled
• Schedule R if you file Form 1040
• Schedule 3 if you file Form 1040A

1. Determine whether you qualify. You must be a U.S. citizen or resident and you must be either age 65 or older or totally and permanently disabled. If you are disabled you must have received disability income in order to qualify for the credit.

2. Determine whether you meet the income limits. There are two limits – adjusted gross income and the total of your nontaxable social security and pension income. The limits are based on your filing status. These limits are subject to change each year. You can find the limits in the instructions for schedule R (Form 1040), Schedule 3 (Form 1040A), and in IRS Publication 524.

3. If you qualify, decide whether you want the IRS to figure your credit or you prefer to do it yourself. If you prefer to figure the credit yourself, skip to step 5.

4. If you want the IRS to figure your credit, attach Schedule R to your return if you use Form 1040 or Schedule 3 if you use form 1040A. Check the box for your filing status and age in Part I. Complete Part II and lines 11 to 13 in Part III if you are disabled. Enter “CFE” on the dotted line next to line 48 of Form 1040 or line 30 of Form 1040A. Skip the rest of these steps.

5. If you prefer to figure the credit yourself, fill out the front of Schedule R if you file Form 1040 or Schedule 3 if you file Form 1040A.

6. Fill out Part III of Schedule R or Schedule 3 to calculate your credit. Your credit is 15% of the amount by which your “initial amount” (a fixed amount based on your filing status and situation) exceeds the total of your nontaxable benefits plus half the amount by which your adjusted gross income exceeds a certain base amount.

7. Carry forward your credit from Schedule R to line 49 on Form 1040, or from Schedule 3 to line 30 on Form 1040A.

Tips & Warnings

• If you file your tax return electronically or you use tax software, the credit for the elderly or the disabled may be calculated automatically. Review your return to ensure you claim the credit if you qualify.
• If you are a disabled veteran, you can use VA Form 21-0172, Certification of Permanent and Total Disability, from the Department of Veterans Affairs.
• If you are a nonresident alien and are married to a U.S. citizen or resident, you and your spouse can decide to treat you as a resident for tax purposes. You will be subject to U.S. income tax on your worldwide income, but you will also be eligible for this credit.
• If you are married you and your spouse must generally file a joint return in order to claim the credit for the elderly or disabled. But if you and your spouse did not live in the same household at any time during the year, you can file either separately or jointly and still claim the credit.
• You cannot file Form 1040-EZ if you want to claim the credit the elderly or the disabled.

Resources

• Schedule R (Form 1040) – Credit for the Elderly or the Disabled
• Instructions for Schedule R (Form 1040)
• Schedule 3 (Form 1040A) – Credit for the Elderly or the Disabled for Form 1040A Filers
• Instructions for Schedule 3 (Form 1040A)
• IRS Publication 524 – Credit for the Elderly or the Disabled