Irs Publication 524 - Credit For The Elderly Or The Disabled

of federal law other than the Internal Revenue Code.

you received $3,200 from social security, which was non-

(Do not include amounts that are a return of your

taxable. You figure the credit as follows:

cost of a pension or annuity. These amounts do not

Example applying the 5 step process

Amount

reduce your initial amount.)

1. Initial amount . . . . . . . . . . . . . . . . . .

$5,000

2. Total nontaxable social security and

You should be sure to take into account all of the

other nontaxable pensions . . . . . . . . $3,200

nontaxable amounts you receive. These amounts

3. Excess adjusted gross income

are verified by the IRS through information sup-

CAUTION

($14,630 –$10,000) ÷ 2 . . . . . . . . . . .

2,315

plied by other government agencies.

4. Add line 2 and line 3 . . . . . . . . . . . . .

5,515

5. Subtract line 4 from line 1

Step 3. Determine Excess Adjusted

(Do not enter less than (-0-)) . . . . . . .

$ -0-

Gross Income

You cannot take the credit because your nontaxable

social security (line 2) plus your excess adjusted gross

You also must reduce your initial amount by your excess

income (line 3) is more than your initial amount (line 1).

adjusted gross income. Figure your excess adjusted gross

income on lines 14–17.

Limit on credit. The amount of credit you can claim is

You figure your excess adjusted gross income as fol-

generally limited to the amount of your tax. For more

lows:

information, see the instructions for Part III, Schedule R.

1. Subtract from your adjusted gross income (Form

1040A, line 22 or Form 1040, line 38) the amount

Examples

shown for your filing status in the following list.

The following examples illustrate the credit for the elderly

a. $7,500 if you are single, a head of household, or a

or the disabled. The initial amounts are taken from

Table 1.

qualifying widow(er),

Initial

Amounts.

b. $10,000 if you are married filing a joint return, or

Example 1. James Davis is 58 years old, single, and

c. $5,000 if you are married filing a separate return

files Form 1040A. In 2004 he retired on permanent and

and you and your spouse did not live in the same

total disability, and he is still permanently and totally dis-

household at any time during the tax year.

abled. He got the required physician’s statement in 2004

and kept it with his tax records. His physician signed on line

2. Divide the result of (1) by 2.

B of the statement. This year James checks the box in Part

II of Schedule R. He does not need to get another state-

Step 4. Determine the Total of Steps 2

ment for 2009.

He received the following income for the year:

and 3

Nontaxable social security . . . . . . . . . . . . . . . .

$1,500

To determine if you can take the credit, you must add (on

Interest (taxable) . . . . . . . . . . . . . . . . . . . . . . . .

100

line 18) the amounts you figured in Step 2 and Step 3.

Taxable disability pension . . . . . . . . . . . . . . . . .

11,400

IF the total of

THEN...

Steps 2 and 3 is...

James’ adjusted gross income is $11,500 ($11,400 +

$100). He figures the credit on Schedule R as follows:

equal to or more than the

you cannot take the credit.

amount in Step 1

1. Initial amount . . . . . . . . . . . . . . . . . . . . . . .

$5,000

less than the amount in

you can take the credit.

2. Taxable disability pension . . . . . . . . . . . . .

11,400

Step 1

3. Smaller of line 1 or line 2 . . . . . . . . . . . . . .

5,000

4. Nontaxable social

Step 5. Determine Your Credit

security benefits . . . . . . . . . . . . . . . $1,500

5. Excess adjusted gross income

If you can take the credit, subtract the amount determined

($11,500 − $7,500) ÷ 2 . . . . . . . . . .

2,000

in Step 4 (line 18) from the amount determined in Step 1

(line 12), and multiply the result by 15%.

6. Add lines 4 and 5 . . . . . . . . . . . . . . . . . . . .

3,500

In certain cases, the amount of your credit may be

7. Subtract line 6 from line 3

limited. See

Limit on credit,

later.

(Do not enter less than (–0–)) . . . . . . . . . .

1,500

8. Multiply line 7 by 15% (.15) . . . . . . . . . . . .

225

Example. You are 66 years old and your spouse is 64.

Your spouse is not disabled. You file a joint return on Form

9. Enter the amount from Form 1040A,

line 28 . . . . . . . . . . . . . . . . . . . . . .

216

1040. Your adjusted gross income is $14,630. Together

Publication 524 (2009)

Page 7

Irs Publication 524 - Credit For The Elderly Or The Disabled - 2009 Page 7

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