This tax form is used to calculate the credit for (1) individuals aged 65 or over or (2) individuals under age 65 who retired on permanent and total disability and received taxable disability benefits.
We will calculate your credit based on the amounts on Schedule R and on your income. Because the credit is phased out at higher income levels, it is quite possible that your credit will calculate to zero (that is, you will not have any credit amount), even though you do qualify to claim it.
All of the entries that you make on this form should be made on the "Elderly Credit Worksheet." The information carries from that Worksheet to Schedule R.
Again, to enter the data on this worksheet, use our "Elderly Credit Worksheet."
Line 10 is $5,000, $7,500, or $3,750, depending on which box is checked in Part I (i.e., lines 1 through 9).
An "X" in box 1, 2, 4 , or 7 corresponds to $5,000. An "X" in box 3, 5, or 6 corresponds to $7,500. An "X" in box 8 or 9 corresponds to $3,750.
These are calculated as gross social security minus taxable social security.
The amount of Credit Allowed on line 22 carries from the Alternative Minimum Tax worksheet below, on the line labeled, "Your credit."
If you checked box 5 in Part I (both spouses under 65 and retired on permanent and total disability) and you are required to submit a physician's statement, then the physician's statement on the form should be used for one of you and the other should complete a statement in the same language on a separate sheet of paper and attach it to the return.