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New Member
posted Apr 15, 2023 5:25:02 PM

If I'm 71 years old and have been permanently disabled, can I take the disability tax credit? and if so, how much?

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2 Replies
Level 15
Apr 15, 2023 5:28:42 PM

The credit for elderly and disabled has not been increased by Congress in decades, so very few people qualify for it.

 

For disabled adults:

 

There is an extra amount added to your standard deduction if you are legally blind.   Your federal return does not provide any other credits or deductions for saying you are disabled, with one possible exception.  

 

There is a credit for the Elderly and Disabled which is so small that very few people benefit from it—-it has not been updated/increased by Congress for decades.

 

ELDERLY OR DISABLED CREDIT https://www.irs.gov/help/ita/do-i-qualify-for-the-credit-for-the-elderly-or-disabled

 

There are some states that provide various credits to elderly/disabled folks, so watch for that when you prepare your state return.   The states that I know of that have anything for elderly/disabled are AZ, CT, DE, IA, MO, ND, NJ, NY, VE.   There may be others.

Level 15
Apr 15, 2023 6:48:10 PM

There is a credit for the elderly or disabled (you don't have to be both). But because it has not been adjusted for inflation since 1983, very very few people qualify. If you qualify, TurboTax (TT) will automatically calculate it. It goes on Schedule 3, line 6d (2021-2). It is not a refundable credit. That is, you must have a tax liability to offset to get the credit. Very few people, with that little income have an actual tax to offset. 

 Having any social security income at all works against you. Essentially your potential credit is reduced by any tax you "shoulda paid” on the untaxed Social security income. If you have more than $5000 social security ($7500 Married Filing Jointly and both are elderly or disabled) or VA benefits you will not qualify for the credit.

If you think you qualify, and TT missed it, In TurboTax (TT), enter at:

Federal Taxes Tab

Deductions & Credits

-Scroll down to:

--Other deductions & Credits

  -Elderly or Disabled credit

See schedule R for detailed calculations. https://www.irs.gov/pub/irs-pdf/f1040sr.pdf