Who can claim Tax Credit for the
The IRS allows tax credits for the elderly
and tax credits for the disabled but not every disabled
individuals can claim the tax credit for the disabled. So, who
can claim tax credit for the disabled? Below is information on
who can claim the tax credit for the disabled.
If you are qualified to claim tax credit for
the disabled, you can claim it on the IRS tax form 1040 on the
line that says ' credit for the elderly or the disabled '.
Who qualifies to claim tax credit for the
The qualification for tax credit for the
disabled is similar to the qualification for tax credit for the
elderly. If you are over 65 by the end of the tax year, you
don't even have to be disabled to qualify for this credit.
However, if a taxpayer is over 65 years old by the end of the
previous tax year, then he or she can qualify for the
disabled tax credit if:
he or she is retired on permanent and total
disability or he or she was permanently and totally
disabled when he or she retired
he or she has taxable disability income and
he or she did not reach mandatory retirement age
before the next tax year began.
If a taxpayer meets the test for disability
tax credit above, he or she needs to be a US citizen or US
resident for the entire tax year as well as meet the income
test as outlined in the Elderly tax credit section.
What is the meaning of permanently and
A taxpayer is considered permanently and
totally disabled if he or she cannot engage in any substantial
gainful activity because of his or her physical or mental
condition. Substantial gainful activity is the performance of
significant duties over a reasonable period of time while
working for pay or in work generally done for pay.
Does a physician have to certify my
Yes. A physician has to certify that the
taxpayer was totally and permanently disabled on the day he or
she retired. The taxpayer must keep this statement for his or
her record in case of an IRS inquiry or an IRS audit.
What is taxable disability income?
Taxable disability income must meet the
following two requirements:
the income must be paid under the taxpayer's
employer's accident, health plan or pension plan
the income must be included as wages for the time
the taxpayer is absent from work because of the
permanent and total disability.