To determine if you can claim the credit for the elderly or the permanently and totally disabled, you need to meet specific criteria related to age, disability status, and income limits. Here is a comprehensive breakdown of the requirements:
- Qualified Individual:
- Age Requirement: You must be age 65 or older by the end of the tax year (2023).
- Disability Requirement: If you are under age 65, you must have retired on permanent and total disability and received taxable disability income for the year. Additionally, you must not have reached mandatory retirement age by January 1, 2023.
- Permanent and Total Disability:
- You are considered permanently and totally disabled if you cannot engage in any substantial gainful activity due to a physical or mental condition. A qualified physician must certify that the condition has lasted or is expected to last continuously for at least 12 months or result in death.
- Income Limits:
- Your adjusted gross income (AGI) and the total of your nontaxable social security benefits, nontaxable pensions, annuities, and disability income must be below certain thresholds. These limits are detailed in Table 1 of the relevant IRS publications.
- Filing Status:
- If you are married, you generally must file a joint return to claim the credit unless you lived apart from your spouse for the entire taxable year or qualify to file as head of household.
- Form Requirements:
- You must file Form 1040 or Form 1040-SR and complete Schedule R (Form 1040) to claim the credit. If you want the IRS to calculate the credit for you, you need to check the appropriate box in Part I of Schedule R and fill in the necessary parts of Part II and Part III.
- Credit Calculation:
- The credit amount is generally 15% of your section 22 amount, which is determined based on your initial amount reduced by certain pensions, annuities, or disability benefits that are excluded from gross income. The initial amount varies depending on your filing status and whether both spouses are qualified individuals.
If you meet all the above criteria, you can claim the credit for the elderly or the permanently and totally disabled. If you are unsure about any specific details or need further assistance, refer to IRS Publication 524 and the instructions for Schedule R (Form 1040).
Sources:
2023 Instructions for Schedule R (2023)
§ 22. Credit for the elderly and the permanently and totally disabled
Publication 524 (2023)
Publication 1380
Publication 967
Publication 554 (2022)
