Posted by Income Taxes and Bookkeeping LLC

Know Your Rights with Elderly Tax Credits.

Know Your Rights with Elderly Tax Credits.

The Senior Tax Credit is a tax credit that could pertain to the returns on your tax as an elder or disabled (notwithstanding how old you are) and meet various income specifications. The credit can amass a considerable benefit to seniors who qualify as it may make up for the cost of taxes you might be owing and perhaps end in a reimbursement.


Eligibility Criteria:

To be qualified for the credit for senior tax, you have to:

  • Be 65 years or older after the current or previous tax year (provided you are younger, you have retired on complete disability, have disability income that can be taxed and haven’t gotten to the retirement age required)

  • Be a citizen of the US or be a resident non-citizen (there may be exceptions for non-resident non-citizens married to citizens of the US or resident non-citizens)

  • Meet certain specified income levels provided by the IRS income limits specifically for the disabled and elderly tax credit.


How can you Get the Credit for Senior Tax?

To get credit for senior tax on your taxes, you have to fill a form for your Schedule R (SR) along with your 1040A IRS Form. The form can be found on the official website of the IRS.

If you are married after a tax year, it is generally required that you apply for joint revenues to get the credit. Nonetheless, additional payments can be applied if you didn't reside with your partner at any period in the completed tax year. Further information detailing the procedure for preparing and completing the SR should be available on the website for IRS.

For help in putting your SR together or the general returns on your tax, the IRS provides a free program to prepare tax returns, Volunteer Income Tax Assistance (VITA). The VITA is only available to taxpayers who qualify, especially taxpayers over 60 years old and have an annual income of $53000 or lower. In the VITA program, volunteers certified by the IRS will get assistance with tax preparation and tax counseling. To locate a volunteer of VITA close to you, check the locator for VITA on the website of IRS.


Tax credits for States

Some states also have their particular form of tax credits for seniors or exceptions that can be applied to the returns on your local or state tax returns. For instance, Massachusetts and some other states provide Circuit Breaker Tax Credits to seniors that qualify based on taxes for real estate or lease paid in the year. More information on tax credits for seniors or exceptions that could be accessible where you are can be found on the treasury website of your state or your revenue agency’s website.

More Details

The federal tax credit for seniors is only registered with the applicant’s tax returns. So, it would not be used if the senior qualified was recorded as one dependent on an individual’s tax returns. However, in several instances, it could be helpful for an elder to be professed as being dependent, seeing that more tax bonuses may pertain to the applicant, involving medical cost deductions, also deductions for dental bills, home care expenses or expenses for adult care.

For seniors to be regarded as dependent on someone else's tax returns, the applicant must provide more than half the finance of the senior, and the elder involved must have resided with the applicant for a whole calendar year, alongside other qualifications.


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