Disabled

[swedishamrock]

I am doing my taxes and noticed there is a credit for people that are @disabled.  Then the question is asked if you retired in 2019.

I did not retire in 2019.  I am under the age of 65 and have been permanently disabled for 25 years.  

Is there a credit that I can take? I am filing as married filing jointly... or is there only a credit for those who retired last year?

[JulieS]

There has been a Credit for the Elderly or Disabled for several years. There are a lot of limitations, but you should review the link below to see if you can claim it. 

Click here to review Schedule R.

[anotherartistguy]

I have similar questions, regarding disability deductions and credits. Unfortunately I was disabled in 2017 and have never claimed disability deductions or credits regarding hospital bills or other medical related costs. This is going on since 2004 when I had my first compensation case it was never encourage to file support and legal assistance. All I was told is to use my settlements for additional bills that the insurance didn’t pay. What is my recourse to file retroactive claims with the IRS? Plus I want to know how to amend 2020 taxes to add on medical expenses and cost for accessible equipment out of pocket.

[xmasbaby0]

@anotherartistguy The federal credit for elderly and disabled has not been increased in many years, and is so low that very few people are able to use it, so it is unlikely that you have missed out on anything.   You can look at it and see:

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

As for claiming medical expenses......if you did not have taxable income with tax withheld, then claiming medical expenses will be of no benefit.   Did you have tax withheld from any of your income?   Medical expenses are an itemized deduction, and the threshold to get a deduction for medical expenses is pretty hard to reach.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2020—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expense

[Hal_Al]

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.

A simplified  rule of thumb is:  if you have earned a  social security benefit , including SSDI, you won't qualify for the Credit for the Elderly and Disabled.

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