How to apply for Federal Credit for the Elderly or the Disabled (IRS Schedule R)

Who it's for

The Credit for the Elderly or the Disabled is a nonrefundable federal income tax credit, claimed on IRS Schedule R, for taxpayers who are age 65 or older (or who are permanently and totally disabled) and have low income. The maximum credit is $750 for a single filer and up to $1,125 for a married couple (both age 65 or older), but the actual amount is reduced — often to zero — by any nontaxable Social Security benefits and by adjusted gross income above a low threshold. Because the income limits have not been updated since the 1980s, the credit most often produces a real dollar benefit for low-income seniors whose income comes from small pensions or wages rather than Social Security, and for people under 65 retired on permanent disability. It is one of the most under-claimed line items on the senior tax return, in part because the seniors it targets frequently are not required to file at all.

What you'll need

• A filed federal Form 1040 with Schedule R attached (the credit cannot be claimed without filing a return, even if filing is not otherwise required)
• Proof of age 65+ OR, if under 65, a physician's statement certifying permanent and total disability
• Records of all income for the year — Social Security (SSA-1099), pensions (1099-R), wages (W-2), and any other sources
• Prior-year return, if available, to help free tax-prep volunteers complete Schedule R

Where to apply

What to say when you call

“Hello, I'm calling to ask about Federal Credit for the Elderly or the Disabled (IRS Schedule R). I'd like to know whether I may qualify, what documents I need, and whether I can apply online, by mail, by phone, or in person. I understand I may need a filed federal form 1040 with schedule r attached (the credit cannot be claimed without filing a return, even if filing is not otherwise required), proof of age 65+ or, if under 65, a physician's statement certifying permanent and total disability, records of all income for the year — social security (ssa-1099), pensions (1099-r), wages (w-2), and any other sources — is anything else required? What is the best next step?”

Tip: have a pen ready, ask for the person's name, and write down any case or reference number they give you.

Step by step

1. Gather your income records for the tax year — this includes your SSA-1099 for Social Security benefits, any 1099-R forms for pension income, W-2 forms for wages, and records of any other income sources.
2. Confirm your eligibility: you must be age 65 or older, OR under 65 and permanently and totally disabled. If you are under 65, obtain a physician's statement certifying your permanent and total disability.
3. Pull out your prior-year federal tax return if you have one — free tax-prep volunteers can use it to help complete Schedule R more quickly and accurately.
4. Choose how to file: prepare your federal Form 1040 with Schedule R on your own, use free tax-preparation assistance (such as IRS-sponsored volunteer programs), or call the IRS at 1-800-829-1040 for guidance.
5. Complete IRS Schedule R, which calculates the credit based on your filing status, age or disability status, nontaxable Social Security benefits, and adjusted gross income.
6. Attach the completed Schedule R to your federal Form 1040 and submit your return — the credit cannot be claimed without filing a return, even if you would not otherwise be required to file.

What to expect: After you file your federal return with Schedule R attached, the IRS will process your return and apply the credit against any federal income tax you owe. Because this is a nonrefundable credit, it can reduce your tax bill to zero but will not result in a refund on its own. Processing times vary, so contact the IRS at 1-800-829-1040 if you have questions about the status of your return. This credit is not a one-time benefit — it must be claimed each year by filing a new federal tax return with a new Schedule R, so plan to repeat this process every tax season as long as you remain eligible.

Renewals

annual (claimed each year on the federal tax return)