Lloyd is 65 and Janet is 71; What does "Age 65 Special Exemption Credit" mean? How does it affect us?

The standard deduction is increased when the taxpayer or spouse are 65 or older and this is computed automatically by the program.  Some states may have credits for the "elderly" and they are discussed in the state interview. 

Explain claiming this credit please

Are you referring to a state credit?  If so, what state?

 

Or are you referring to the Federal Credit for the Elderly or the Disabled?

 

It is a credit for taxpayers:

• aged 65 or older OR retired on permanent and total disability and received taxable disability income for the tax year; AND
• with an adjusted gross income OR the total of nontaxable Social Security, pensions annuities or disability income under specific limits.

Income limits are here page 5.