Disabled Credit

About Disabled Credit:

Elderly Or Disabled (Tax) Credit is a maximum allowable credit of up to $1,125 (15% of $7,500), based on the filing status of an elderly or disabled taxpayer. Social Security benefits and Adjusted Gross Income in excess of a base amount reduce the available credit. The credit applies to citizens and residents who (1) are 65 years of age before the close of the tax year or (2) are retired on a disability before the close of the tax year and are permanently and totally disabled upon retirement. Former IRC (check if this IRC provision is current here) §22.

This credit is for low-income taxpayers age 65 or older at the end of 2010, or those who are retired on permanent and total disability. This is not an automatic credit for seniors; in fact, relatively few taxpayers qualify for it.

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.