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

  • This credit applies ONLY if 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 (typically, code 3 on a 1099-R), AND was under the minimum retirement age as of December 31 of the tax year.
  • This is a nonrefundable credit; if the taxpayer owes no tax (see Line 16 of the 1040), it has no effect on the tax owed, but should still be entered because it can affect calculations such as the taxable amount of a state income tax refund. 
  • There are income and other limitations for this credit. 
    • If AGI is greater than $25,000, or Social Security benefits are more than $7,500, then the taxpayer is not eligible for this credit; do not go to the TaxSlayer pages or research further.
    • If the taxpayer (disabled or at least 65 years old) is under those dollar limits, use the screening sheet on Pub 4012 page G-22 to determine whether they qualify.
  • If the taxpayer does qualify, based on the screening sheet in Pub 4012, 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 the related box on page 1 of the Intake Booklet should be checked.
    • On the initial page, select the appropriate category.
    • TaxSlayer shouldn’t show the second page, Statement of Disability, if the taxpayer (or both taxpayer and spouse, if MFJ) are 65 or older. But it should appear if one or both is disabled and under age 65.
    • The third page, 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; one example would be 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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