I have not worked since May 10, 2014 due to my Service connected disabilities. I finally received a VA decision on my appeal from 2/2015, from this I am now considered 100% Totally and Permanently disabled with am effective date of 5/10/2014. Can I claim this credit on my taxes this year?
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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 6 (2019-20). Box c should be checked and “Sch R” placed on the line next to that box. 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. http://www.irs.gov/pub/irs-pdf/f1040sr.pdf
http://www.irs.gov/publications/p524/ar02.html#en_US_2014_publink100038693
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