Schedule R: Credit for the Elderly or Disabled (Line 6d)

  • This is a nonrefundable credit; if the taxpayer owes no tax (1040 Line 16), it has no effect on the tax owed, but should still be entered if the taxpayer itemized on the federal return and has a state refund (rare; it could affect the taxable amount of the future state income tax refund). 
  • Only for Social Security income under $7501, AGI under $25,001, and the taxpayer or spouse:
    • (1) was age 65 or older at the end of the tax year OR
    • (2) retired on permanent and total disability, had taxable disability income (say, code 3 on a 1099-R), AND was under the minimum retirement age as of December 31 of the tax year.
  • Use the screening sheet on NTTC 4012 page G-28 to determine further eligibility.
  • If the taxpayer does not qualify, don’t enter any information in TaxSlayer.
  • If the taxpayer does qualify per the 4012 screening sheet, go to the Schedule R Retired/Disability Question page [Deductions > Credits Menu > Credit for the Elderly or Disabled Schedule R > Schedule R Retired…](in the search box, shows as “Go to Form Elderly or the Disabled Credit now”).
    • If the taxpayer or spouse is under 65 but retired on permanent and total disability, then check the related box on page 1 of the Intake Booklet.
    • On the screen, select the appropriate category.
    • TaxSlayer should only show the second screen, Statement of Disability, if a taxpayer is disabled and under 65.
    • The third screen, Income, is critical. The two dollar fields are used differently in TaxSlayer calculations.
      • “Total disability income” should include only disability income entered elsewhere in TaxSlayer, such as a code 3 (disability) distribution on a 1099-R. 
      • “Other pension, annuity, or disability benefit that is excluded from income under any other provision of law” should include only income that is not entered elsewhere in TaxSlayer - say, Supplemental Security Income (SSI) payments.
    • Click “Continue” to finish.


All other credits for Line 6 of Schedule 3 are out-of-scope.

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