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Tax Credit Benefits Elderly or Disabled
The Internal Revenue Service wants to ensure elderly taxpayers and those with a disability know whether they are eligible for a valuable tax credit, which could reduce the amount of taxes they owe. The Credit for the Elderly or the Disabled is a dollar-for-dollar reduction of the tax bill and is available to individuals who are either age 65 or older or are under age 65 and retired on permanent and total disability.
Taxpayers may be eligible for the Credit for the Elderly or Disabled if: · a qualified individual; · Adjusted Gross Income (AGI) is less than specific limits ranging from $12,500 to $25,000 depending on the filing status; and, · nontaxable income from Social Security or other nontaxable pension is less than specific limits ranging from $3,750.00 to $7,500.00 depending on the filing status.
A qualified individual for this credit must be a US citizen or resident alien and meets the following eligibility requirements:
· age 65 or older at the end of the year, or · under the age of 65 at the end of the year and retired on permanent and total disability, received taxable disability income, and did not reach mandatory retirement age.
To determine eligibility for this credit, a taxpayer must consider two income limits. The first limit is the amount of the AGI. The second limit is the amount of nontaxable social security and other nontaxable pensions received.
If under the age of 65, a taxpayer must have a physician complete a statement certifying that the taxpayer is permanently and totally disabled on the date of retirement.
For more information on claiming this credit see IRS publication 524, Credit for the Elderly or the Disabled, which may be obtained from IRS.gov or by calling the IRS at 800- TAX-FORM (800-829-3676). For further assistance, taxpayers can call the IRS toll-free at 800-TAX-1040 (800-829- 1040).
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