No matter how old you are, you may still be expected to file your taxes. Keeping track of multiple income sources like Social Security benefits and retirement accounts can make the process seem harder than before. But depending on your income and filing status, you may be eligible for reductions on what you owe during tax season thanks to the federal senior tax credit.

What is the senior tax credit?

Formally known as the “Credit for the Elderly or the Disabled,” the federal senior tax credit is a credit of $3,750 to $7,500 that lowers federal tax bills for older adults and people who retired on permanent and total disability.¹ A person’s tax filing status and different forms of income will determine how much money they receive.

How do I qualify for a senior tax credit?

Older adults qualify for the senior tax credit if they are a U.S. citizen or resident alien and age 65 or older at the end of a calendar year.² According to the Internal Revenue Service, you are considered 65 the day before your birthday. For example, this means the IRS considered a person 65 if they were born Jan. 1, 1959, at the end of 2023.²

People under age 65 can also qualify for the credit if they meet all three of the following criteria:²

• Retired on permanent and total disability
• Received taxable disability income for the tax year
• Did not reach mandatory retirement age by Jan. 1 of the tax year

A permanent and total disability means a health care professional can prove through medical records that you have a physical or mental health condition lasting a year or more that prevents you from holding down a job.²

Your disability income must come from a pension, health or accident plan and be considered your payment or wages during the time you aren’t working. The IRS does not consider the following payments as disability income:²

• Lump-sum annual leave payments after retiring on disability
• Any money you get after reaching your employer’s retirement age, known as a mandatory retirement age
• Any money from plans that don’t offer disability retirement  

You are not eligible for the senior tax credit if someone else claims you as a dependent on their taxes, even if you meet the age or disability retirement requirements.³ The IRS offers an online tool for people to use to see if they qualify.

How is my senior tax credit calculated?

The amount you receive for the senior tax credit will be based on the following:

• Your tax filing status (single or married)
• Your nontaxable Social Security income, disability income, pensions and annuities
• Your adjusted gross income

Your adjusted gross income, or AGI, is money from sources like wages and retirement income after deductions you can take such as your student loan interest and contributions to retirement accounts.⁴

If you are single or a surviving spouse, you could qualify for a $5,000 tax credit if:²

• Your AGI is less than $17,500
• Your nontaxable income is less than $5,000

If you’re married and filing joint taxes but one of you meets tax credit criteria, you could qualify for a $5,000 tax credit if:²

• Your AGI is less than $20,000
• Your nontaxable income is less than $5,000

If you’re married and filing joint taxes and you both meet tax credit criteria, you could qualify for a $7,500 tax credit if:²

• Your AGI is less than $25,000
• Your nontaxable income is less than $7,500

If you’re married but filing your taxes separately from a spouse you haven’t lived with for all of the tax year, you could qualify for a $3,750 credit if:²

• Your AGI is less than $12,500
• Your nontaxable income is less than $3,750

How do I file for the senior tax credit?

Along with your usual 1040 form to file your taxes, you will need to fill out a Schedule R form to apply for the senior tax credit.² This form is where you’ll fill out your age, tax filing status and disability status if you’re under age 65. If you need help filling out your form, or with your taxes in general, the IRS offers free programs for people who need assistance:

Volunteer Income Tax Assistance Program: This IRS program awards grant money to community organizations nationwide to provide free tax assistance to older adults, people with disabilities and people who speak limited English.⁵

Tax Counseling for the Elderly: This IRS program gives grants to local organizations to provide free tax help during tax season to adults age 60 and older, and in some cases answer any tax questions year-round.⁶

The IRS provides a locator tool to help you find free tax preparation near you, as well as an updated list of organizations across the U.S. that participate in both programs.

What if I don’t qualify for a federal senior tax credit?

If you don’t qualify for the senior tax credit after filing your federal taxes, consider looking into whether your state offers a senior tax credit for your state taxes.³ Depending on where you live, you may be able to qualify for certain tax breaks, such as reductions in property taxes or not having to pay taxes on certain types of retirement accounts.⁷ The Association of International Certified Professional Accountants provides a list of state revenue office websites where you can find options available where you live.

Sources

1. Internal Revenue Service. Credit for the Elderly or the Disabled at-a-Glance. Found on the Internet at https://www.irs.gov/credits-deductions/individuals/credit-for-the-elderly-or-the-disabled

2. Internal Revenue Service. Publication 524 (2023), Credit for the Elderly or the Disabled. Found on the Internet at https://www.irs.gov/publications/p524

3. FindLaw.com. The Senior Tax Credit: Do I Qualify? Found on the Internet at https://www.findlaw.com/elder/elder-care-law/the-senior-tax-credit-do-i-qualify.html

4. Internal Revenue Service. Definition of adjusted gross income. Found on the Internet at https://www.irs.gov/e-file-providers/definition-of-adjusted-gross-income

5. Internal Revenue Service. IRS VITA Grant Program. Found on the Internet at https://www.irs.gov/individuals/irs-vita-grant-program

6. Internal Revenue Service. Tax Counseling for the Elderly. Found on the Internet at https://www.irs.gov/individuals/tax-counseling-for-the-elderly

7. Center on Budget and Policy Priorities. States Should Target Senior Tax Breaks Only to Those Who Need Them, Free up Funds for Investments. June 19, 2019. Found on the Internet at https://www.cbpp.org/research/states-should-target-senior-tax-breaks-only-to-those-who-need-them-free-up-funds-for