What is an 'Elderly and Disabled Credit'

The Elderly and Disabled credit is a non-refundable tax credit available to taxpayers who are 65 or older, or who are legally, permanently and totally disabled. 

BREAKING DOWN 'Elderly and Disabled Credit'

The Elderly and Disabled Credit was created with the goal of providing financial relief to retired senior citizens or taxpayers with a disability who may be otherwise unable to find employment.

The Elderly and Disabled Credit is claimed on Schedule R of the individual tax return form. Married couples must file jointly to claim the credit. Some income and Social Security benefit limitations apply to a taxpayer’s ability to collect the credit.

Additionally, a taxpayer must have a physician’s written certification that they meet the criteria of the Internal Revenue Service (IRS) to be considered disabled and to claim the credit. The taxpayer must also receive taxable disability income, and there are also additional income limits for the disability income.

Those looking to determine if they qualify for the Elderly and Disabled Credit when filing their annual income taxes should check the IRS website for qualifications or consult with a licensed tax professional.

What are Disability Benefits

According to the IRS many conditions legally qualify under disability. Being legally blind or possessing a diagnosis of a mental or physical disability may qualify you to receive disability benefits. This form of income is provided through the Social Security Administration (SSA). A person must be at least 18 years of age to apply for disability income, and their condition must be estimated to last at least 12 months or be expected to result in the death of the applicant and prevent them from obtaining gainful employment.

While there are many different conditions and diagnoses that can be considered a disability, all conditions require the diagnosis and certification of a licensed physician. Once a taxpayer has that information, the taxpayer can go directly to the SSA website and apply for benefits online, by phone or in the local SSA office.

Parents have the option to apply for benefits on behalf of their claimants when they are over the age of 18 but unable to complete the application on their own behalf. Also, those who receive disability income will not receive a W2 as most wage earners do at the close of a tax year. They will instead receive a 1099 and will use that form to determine any remaining taxable liability.  

  1. IRS Publication 524 - Credit For ...

    A document published by the Internal Revenue Service (IRS) providing ...
  2. Any-Occupation Policy

    Any-occupation policy is disability insurance where the insured ...
  3. Waiver Of Premium For Disability ...

    Waiver of premium for disability is an insurance policy provision ...
  4. Americans With Disabilities Act ...

    Legislation passed in 1990 that prohibits discrimination against ...
  5. Child And Dependent Care Credit

    Child and dependent care credit is a non-refundable tax credit ...
  6. Elder Law

    Elder law is a legal specialty focusing on the rights and needs ...
Related Articles
  1. Financial Advisor

    How to Help Clients Who Have Become Disabled

    Disability can strike a client any time. Advisors should make sure clients are adequately insured against this risk and know what benefits are available.
  2. Insurance

    Protecting Your Income With Disability Insurance

    For a high-earning professional, income protection is essential. Here's what to look for in a disability insurance policy.
  3. Insurance

    Choosing The Best Disability Insurance

    Social Security benefits can be hard to collect. Find out why you need disability insurance to protect your income, and learn how to choose the right policy for you.
  4. Retirement

    What If Social Security Disability Runs Out Of Money?

    The social security disability program is nearly bankrupt and could run out of money by 2016.
  5. Insurance

    Group and Individual Disability Insurance: What You Need to Know

    What you need to know about group and individual disability income coverage.
  6. Insurance

    5 Things You Need to Know About Disability Insurance

    It's important to understand the true value of your ability to earn income, and to make sure it's protected.
  7. Retirement

    Types Of Social Security Benefits

    Social Security isn't just for the retired. It also pays benefits to the disabled, widows and widowers, children, stepchildren, divorced spouses and more.
  8. Insurance

    Disability Insurance For Business Owners

    If you become injured and no longer able to work, would your business survive?
  9. Retirement

    Social Security: More Than Retirement Benefits

    Social Security offers a lot more than just retirement benefits.
  10. Retirement

    Using The Social Security Website To Get Answers

    The Social Security website is full of useful information. To save you time, here's a guide – and links – to finding answers to the most common questions.
  1. What are the maximum Social Security disability benefits?

    The benefit amount for a recipient of Social Security Disability Insurance (SSDI) varies based on average lifetime earnings. ... Read Answer >>
  2. Are My Social Security disability benefits taxable?

    In some situations and in some states, your Social Security disability benefits are taxable. Read Answer >>
Hot Definitions
  1. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  2. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  3. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
  4. Inventory Turnover

    Inventory turnover is a ratio showing how many times a company has sold and replaces inventory over a period.
  5. Watchlist

    A watchlist is list of securities being monitored for potential trading or investing opportunities.
  6. Hedge Fund

    A hedge fund is an aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions.
Trading Center