The Credit for the Elderly or the Disabled is a nonrefundable credit, and its calculation varies depending on the taxpayer's filing status, age, adjusted gross income, and non-taxable benefits (i.e., Social Security, Pensions, and Annuities.)  If the tax return has a filing status of married filing jointly, the spouse's age, income, and disability status are also taken into account.

This credit may be taken if all of the following applies:

1. The taxpayer was age 65 or older at the end of the tax year, or
2. The taxpayer was under age 65 at the end of the tax year, and all of the following are true:
• They were permanently and totally disabled on the date they retired.
• They received taxable disability income for all of the tax year.
• On January 1, they hadn't reached mandatory retirement age (the age at which their employer's retirement program would have required them to retire).

Taxpayers born on January 1 are considered to be age 65 the day before their 65th birthday.

Taxable disability income has two characteristics:

1. It is paid under the employer's accident or health plan, or pension plan.
2. It is included in income as wages (or payments instead of wages) for the time the taxpayer was absent from work because of permanent and total disability.

To access the Credit for the Elderly or the Disabled from the Federal Section of the tax return, select:

• Deductions
• Credits Menu
• Credit for the Elderly or the Disabled - Click the circle next to the statement that best describes the taxpayer's and/or spouse's situation regarding their age and disability status.
• Statement of Disability - Based on the previous answer, you may be asked about the taxpayer's statement of disability. Click the check box indicating that the statement of disability is accurate, or if it's not accurate, don't click the box but note that the taxpayer will need to get a new statement from their physician. The statement can be found in the Schedule R instructions and, once signed by the physician, should be retained by the taxpayer.
• Income - Enter the income amounts requested:
  
  • Taxable disability income.
  • Other Nontaxable pensions or annuities, or disability benefits are excluded from income and not previously reported as non-taxable from income.
    

Reminder: This is a nonrefundable credit, only available if the return calculates a tax liability.