2025 IRS Publication 524: Credit for the Elderly or Disabled – Eligibility & Benefits Explained

What is IRS Publication 524?

IRS Publication 524 outlines the federal tax credit specifically designed for low-income individuals who are either 65 years or older or permanently disabled. This credit helps reduce the tax burden for eligible taxpayers, providing much-needed financial relief.

To qualify, taxpayers must be U.S. citizens or resident aliens aged 65 or older, or those retired due to permanent and total disability. Nonresident aliens may qualify if married to a U.S. citizen or resident alien. Typically, married couples must file jointly to claim this credit.

• Available to seniors aged 65+ and permanently disabled individuals.
• Eligibility depends on both taxable and nontaxable income thresholds.
• Claim this credit by attaching Schedule R to Form 1040 or Form 1040-SR.

Understanding Eligibility and Income Limits

This tax credit targets low-income elderly and disabled taxpayers. For the 2020 tax year, the adjusted gross income (AGI) limits were $17,500 for single or widowed filers and $25,000 for married couples where both spouses qualify.

However, certain income restrictions apply. For example, a single filer with $5,000 or more in nontaxable income, such as pensions, does not qualify regardless of AGI. For couples, the nontaxable income limit is $7,500.

Value of the Credit

The IRS provides a worksheet to calculate the exact credit amount, or taxpayers can opt for the IRS to perform the calculation. This credit reduces your tax liability dollar-for-dollar, making it more beneficial than a deduction.

Note that this credit is nonrefundable, so if it exceeds your tax owed, your tax bill drops to zero but you will not receive a refund for the difference.

For example, a single filer with an AGI of $13,100 might receive a credit of $71 according to IRS guidelines.

How to Claim the Credit

To claim this tax credit, you must complete and attach Schedule R (Credit for the Elderly or the Disabled) to your Form 1040 or Form 1040-SR when filing your federal income tax return.

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