What Is IRS Schedule R?
Schedule R is a worksheet titled “Credit for the Elderly or the Disabled” that gets filed with 1040 tax returns. It can be used by people 65 years of age or older and by individuals less than 65 who cannot work due to a disability, to determine if they qualify for a tax credit.
What are the Age Requirements for the IRS Elderly Credit?
As mentioned above, an elderly taxpayer wanting to claim the Schedule R tax credit must be at least 65 years old at the end of the tax year. This means those filing 2023 tax year returns with Schedule R must be 65 by December 31, 2023.
What are the Disability Requirements for the IRS Disabled Credit?
People with a disability do not need to be officially retired to receive the Schedule R credit. If you had to drop out of the workforce before age 65 because of a disability, you may still be eligible for the credit.
The IRS considers anyone who cannot perform substantial gainful activity, or SGA, as disabled and likely eligible for the tax credit using Schedule R. The IRS defines substantial gainful activity as performing “significant duties” over a reasonable period of time that provides a person with income.
How much income the disabled person earned further determines the eligibility of a particular SGA for elderly or disabled tax credits.
Even when a disabled individual is working for less than minimum wage or doing “make-work” (i.e., busy work), the IRS still considers that person eligible for the Schedule R tax credit.
If you are applying for the Schedule R credit, you will need to show proof that you are disabled. A qualified, licensed physician must provide a certified report stating that you have been diagnosed with a disabling physical or mental health condition. That the condition is expected to continue affecting your health for at least the next 12 months or, that the condition will probably result in your death.
What are the Income Requirements for the IRS Elderly and Disabled Credit?
The income limits for qualifying for Schedule R credits are all based on filing status and adjusted gross income (AGI):
Single or HOH filing status
Income less than or equal to $17,499 OR nontaxable SS, pension(s), or disability less than or equal to $4,999.
Widow/Widower
Income less than or equal to $17,499 OR nontaxable SS, pension(s), or disability less than or equal to $4,999.
Married filing jointly with one qualifying spouse
Income less than or equal to $19,999 OR nontaxable SS, pension(s), or disability less than or equal to $4,999.
Married filing jointly with both spouses qualifying
Income less than or equal to $24,999 OR nontaxable SS, pension(s), or disability less than or equal to $7,499.
Married filing separately with both spouses not living together
Income less than or equal to $12,499 OR nontaxable SS, pension(s), or disability less than or equal to $3,749.
To view current 1040 Schedule R income limits before filing, go to https://irs.gov/instructions/i1040sr and click “Income Limits” on the left.
What Information Is Needed to Complete the IRS Schedule R Credit Form?
The IRS provides an online tool at irs.gov/help/ita/do-i-qualify-for-the-credit-for-the-elderly-or-disabled to help people determine if they qualify for the elderly and disabled tax credit. Information needed to complete the Schedule R assessment includes:
- Filing status
- Your age and spouse’s age (if applicable)
- Amount of total taxable income
- Amount of total nontaxable income
Note that nontaxable income includes but may not be limited to:
- Social Security benefits before deducting workers’ compensation or some Medicare premiums.
- Railroad Retirement Board payments that are considered Social Security benefits.
- Disability, annuity, or pension benefits from the Veterans’ Administration.
How Much Will My IRS Elderly or Disability Tax Credit Be?
The tax credit for the elderly or disabled ranges from $3,750 to $7,000. IRS Publication 524 provides a helpful explanation for how to calculate the Schedule R tax credit amount you can take: irs.gov/publications/p524.
For individuals filing single, head of household, married filing jointly with one qualifying spouse, or qualifying widow/widower, the amount of the tax credit you can take is $5,000.
For married couples filing jointly with both spouses qualifying for the elderly or disabled tax credit, the amount is $7,500.
If you are married but filing separately and you do not live with your spouse, the amount is $3,750.
Be aware that if the sum of your nontaxable Social Security and excess AGI is more than your credit amount, you will not be able to take a tax credit using Schedule R.
Do I Need to File Other Forms Along with Schedule R?
Yes. Claiming the elderly or disabled tax credit requires you to file your Form 1040 and/or Form 1040-SR tax return in addition to Schedule R.
Schedule R simply shows the IRS how you calculated your tax credit amount. Form 1040 is your standard tax return. Form 1040-SR is the tax form for seniors at least 65 years of age. Failing to file a 1040 or a 1040-SR along with a Schedule R will likely result in a delay of receiving a refund based on the credit amount for which you qualify.
Need more help? You can start online by answering 6 simple questions. You can also call us at 866-568-4593.
6 Simple Questions. Free Evaluation.
Join our Newsletter
Enter your email address to join our free newsletter. Get all the latest news and updates.