52415046sCredit for
the Elderly or
the Disabled Reminder1Introduction1Can You Take the Credit?2Qualified Individual2Income Limits6Figuring the Credit6Step 1. Determine Initial Amount6Step 2. Total Certain Nontaxable Pensions and Benefits6Step 3. Determine Excess Adjusted Gross Income6Step 4. Determine Your Credit7Credit Figured for You7Examples8How To Get Tax Help14Index16ReminderPhotographs of missing children.Missing children:Photographs of
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children
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photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
If you qualify, the law provides a number of credits that can reduce the tax you owe for a year. One of these credits is the credit for the elderly
or the disabled.
This publication explains:
Who qualifies for the credit for the elderly or the disabled, and
How to figure this credit.
You may be able to take this credit if you are:
Age 65 or older, or
Retired on permanent and total disability.
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Help in the back of this publication.
Publication554Older Americans' Tax Guide967The IRS Will Figure Your TaxForms (and instructions)Credit for the Elderly or the DisabledCredit for the Elderly or the Disabled for Form 1040A Filers
See How To Get Tax Help, near the end of this publication, for information about getting these publications and forms.
Eligibility for creditCan You Take the Credit?
You can take the credit for the elderly or the disabled if you meet both of the following requirements.
You are a qualified individual.
Your income is not more than certain limits.
Figure A. Are You a Qualified Individual? and Figure B. Income LimitsSummary: This flowchart is used to determine if a taxpayer is a qualified individual to take the credit for the elderly or the disabled. The
list that follows the flowchart illustrates the conditions that disqualify an individual from the credit for the elderly or the disabled.StartThis is the starting of the flowchart.Decision (1)Are you a United States citizen or resident?Footnote 1: If you were a nonresident alien at any time during the tax year and were married to a United States citizen or resident at the end
of the tax year, see United States Citizen or Resident under Qualified Individual. If you and your spouse choose to treat you as a United States
resident, answer yes to this question.IF Yes Continue To Decision (2)IF No Continue To Process (a)Process (a)You are not a qualified individual and cannot take the credit for the elderly or the disabled.Continue To EndDecision (2)Were you 65 or older at the end of the year?IF Yes Continue To Process (b)IF No Continue To Decision (3)Process (b)You are a qualified individual and may be able to take the credit for the elderly or the disabled unless your income exceeds the limits in
Figure B.Continue To EndDecision (3)Are you retired on permanent and total disability?IF Yes Continue To Decision (4)IF No Continue To Process (a)Decision (4)Did you reach mandatory retirement age before this year?Footnote 2: Mandatory retirement age is the age set by your employer at which you would have been required to retire, had you not become
disabled.IF Yes Continue To Process (a)IF No Continue To Decision (5)Decision (5)Did you receive taxable disability benefits this year?IF Yes Continue To Process (b)IF No Continue To Process (a)EndThis is the ending of the flowchart.If your filing status is Single, Head of household, or Qualifying widow(er) with dependent child, then, even if you qualify (see Figure A),
you CANNOT take the credit if your adjusted gross income is equal to or more than $17,500 (Footnote: Adjusted gross income is the amount on Form
1040A, line 22, or Form 1040, line 38.) OR the total of your nontaxable social security and other nontaxable pension(s) is equal to or more than
$5,000If your filing status is Married filing a joint return and both spouses qualify in Figure A, then, even if you qualify (see Figure A), you
CANNOT take the credit if your adjusted gross income is equal to or more than $25,000 (Footnote: Adjusted gross income is the amount on Form 1040A,
line 22, or Form 1040, line 38.) OR the total of your nontaxable social security and other nontaxable pension(s) is equal to or more than
$7,500If your filing status is Married filing a joint return and only one spouse qualifies in Figure A, then, even if you qualify (see Figure A),
you CANNOT take the credit if your adjusted gross income is equal to or more than $20,000 (Footnote: Adjusted gross income is the amount on Form
1040A, line 22, or Form 1040, line 38.) OR the total of your nontaxable social security and other nontaxable pension(s) is equal to or more than
$5,000If your filing status is Married filing a separate return and you did not live with your spouse at any time during the year, then, even if
you qualify (see Figure A), you CANNOT take the credit if your adjusted gross income is equal to or more than $12,500 (Footnote: Adjusted gross income
is the amount on Form 1040A, line 22, or Form 1040, line 38.) OR the total of your nontaxable social security and other nontaxable pension(s) is equal
to or more than $3,750
You can use Figures A and B as guides to see if you qualify. Use Figure A first to see if you are a
qualified individual. If you are, go to Figure B to make sure your income is not too high to take the credit.
You can take the credit only if you file Form 1040 or Form 1040A. You cannot take the credit if you file Form 1040EZ.
Qualified IndividualQualified individuals
Tables and figures:Qualified individual determination (Figure A)You are a qualified individual for this credit if you are a U.S. citizen or
resident, and either of the following applies.
You were age 65 or older at the end of 2005.
Qualified individuals:Age 65 or older
You were under age 65 at the end of 2005 and all three of the following statements are true.
You retired on permanent and total disability (explained later).
You received taxable disability income for 2005.
On January 1, 2005, you had not reached mandatory retirement age (defined later under Disability income).
Disability, permanent and total disabilityPermanent and total disabilityQualified individuals:Under age 65 and retired on permanent and total disability
Age 65.Age:Age 65
You are considered to be age 65 on the day before your 65th birthday. Therefore, if you were born on January 1, 1941, you are considered to be age
65 at the end of 2005.
U.S. Citizen or ResidentCitizenship requirementResidence requirementU.S. citizens and residents
You must be a U.S. citizen or resident (or be treated as a resident) to take the credit. Generally, you cannot take the credit if you were a
nonresident alien at any time during the tax year.
Exceptions.Nonresident aliens
You may be able to take the credit if you are a nonresident alien who is married to a U.S. citizen or resident at the end of the tax year and you
and your spouse choose to treat you as a U.S. resident. If you make that choice, both you and your spouse are taxed on your worldwide incomes.
If you were a nonresident alien at the beginning of the year and a resident at the end of the year, and you were married to a U.S. citizen or
resident at the end of the year, you may be able to choose to be treated as a U.S. resident for the entire year. In that case, you may be allowed to
take the credit. For information on these choices, see chapter 1 of Publication 519, U.S. Tax Guide for Aliens.
Married PersonsJoint returnsMarried taxpayers
Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. However, if you and your
spouse did not live in the same household at any time during the tax year, you can file either joint or separate returns and still take the credit.
Head of household.Head of household
You can file as head of household and qualify to take the credit, even if your spouse lived with you during the first 6 months of the year, if you
meet all the following tests.
You file a separate return.
You paid more than half the cost of keeping up your home during the tax year.
Your spouse did not live in your home at any time during the last 6 months of the tax year and the absence was not temporary. (See
Temporary absences in Publication 501.)
Your home was the main home of your child, stepchild, or an eligible foster child for more than half the year. An eligible foster child is a
child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.
You can claim an exemption for that child, or you cannot claim the exemption only because a decree of divorce or separate maintenance or
written separation agreement that applies to 2005 provides that the noncustodial parent can claim the child as a dependent (and, in the case of a
pre-1985 agreement, the noncustodial parent provides at least $600 for the support of the child during the year) or you, the custodial parent, sign a
written declaration that you will not claim the child as a dependent for the year.
For more information on head of household and other filing statuses, see Publication 501, Exemptions, Standard Deduction, and Filing
Information.
Under Age 65Qualified individuals:Under age 65 and retired on permanent and total disability
If you are under age 65 at the end of 2005, you can qualify for the credit only if you are retired on permanent and total disability. You are
retired on permanent and total disability if:
You were permanently and totally disabled when you retired, and
You retired on disability before the close of the tax year.
Even if you do not retire formally, you are considered retired on disability when you have stopped working because of your disability.
If you retired on disability before 1977, and were not permanently and totally disabled at the time, you can qualify for the credit if you were
permanently and totally disabled on January 1, 1976, or January 1, 1977.
You are considered to be under age 65 at the end of 2005 if you were born after January 1, 1941.
Permanent and total disability.Disability, permanent and total disabilityPermanent and total disability
Physician certificationYou are permanently and totally disabled if you cannot engage in any substantial gainful activity because
of your physical or mental condition. A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or
more, or that the condition can be expected to result in death. See Physician's statement, later.
Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work
generally done for pay or profit. Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least
the minimum wage conclusively shows that you are able to engage in substantial gainful activity.
Substantial gainful activity is not work you do to take care of yourself or your home. It is not unpaid work on hobbies, institutional therapy or
training, school attendance, clubs, social programs, and similar activities. However, doing this kind of work may show that you are able to engage in
substantial gainful activity.
Out of workThe fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in
substantial gainful activity.
The following examples illustrate the tests of substantial gainful activity.
Example 1.
Trisha, a sales clerk, retired on disability. She is 53 years old and now works as a full-time babysitter for the minimum wage. Even though Trisha
is doing different work, she is able to do the duties of her new job in a full-time competitive work situation for the minimum wage. She cannot take
the credit because she is able to engage in substantial gainful activity.
Example 2.
Tom, a bookkeeper, retired on disability. He is 59 years old and now drives a truck for a charitable organization. He sets his own hours and is not
paid. Duties of this nature generally are performed for pay or profit. Some weeks he works 10 hours, and some weeks he works 40 hours. Over the year
he averages 20 hours a week. The kind of work and his average hours a week conclusively show that Tom is able to engage in substantial gainful
activity. This is true even though Tom is not paid and he sets his own hours. He cannot take the credit.
Example 3.
John, who retired on disability, took a job with a former employer on a trial basis. The purpose of the job was to see if John could do the work.
The trial period lasted for 6 months during which John was paid the minimum wage. Because of John's disability, he was assigned only light duties of a
nonproductive make-work nature. The activity was gainful because John was paid at least the minimum wage. But the activity was not substantial
because his duties were nonproductive. These facts do not, by themselves, show that John is able to engage in substantial gainful activity.
Example 4.
Joan, who retired on disability from a job as a bookkeeper, lives with her sister who manages several motel units. Joan helps her sister for 1 or 2
hours a day by performing duties such as washing dishes, answering phones, registering guests, and bookkeeping. Joan can select the time of day when
she feels most fit to work. Work of this nature, performed off and on during the day at Joan's convenience, is not activity of a substantial and
gainful nature even if she is paid for the work. The performance of these duties does not, of itself, show that Joan is able to engage in
substantial gainful activity.
Certain work offered at qualified locations to physically or mentally impaired persons is considered sheltered employment. These qualified
locations are in sheltered workshops, hospitals and similar institutions, homebound programs, and Department of Veterans Affairs (VA) sponsored homes.
Compared to commercial employment, pay is lower for sheltered employment. Therefore, one usually does not look for sheltered employment if he or
she can get other employment. The fact that one has accepted sheltered employment is not proof of the person's ability to engage in substantial
gainful activity.
Physician's statement.Physician certification
Form 1040, Schedule RForm 1040A, Schedule 3If you are under age 65, you must have your physician complete a statement certifying that you were
permanently and totally disabled on the date you retired. You can use the statement in the instructions for Schedule R (Form 1040) or Schedule 3 (Form
1040A).
You do not have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records.
Veterans.Veterans:Certification by VA of permanent and total disability
VA Form 21-0172:Certification of permanent and total disabilityIf the Department of Veterans Affairs (VA) certifies that you are
permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement
you are required to keep. VA Form 21-0172 must be signed by a person authorized by the VA to do so. You can get this form from your local VA regional
office.
If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial
gainful activity during 2005, you may not need to get another physician's statement for 2005. For a detailed explanation of the conditions you must
meet, see the instructions for Part II of Schedule R (Form 1040) or Schedule 3 (Form 1040A). If you meet the required conditions, check the box on
line 2 of Part II of Schedule R (Form 1040) or Schedule 3 (Form 1040A).
If you checked box 4, 5, or 6 in Part I of either Schedule R or Schedule 3, enter in the space above the box on line 2 in Part II the first name(s)
of the spouse(s) for whom the box is checked.
Disability income.Disability income
If you are under age 65, you can qualify for the credit only if you have taxable disability income. Disability income must meet both of the
following requirements.
It must be paid under your employer's accident or health plan or pension plan.
Employer's accident or health plans or pension plans:Disability income from
It must be included in your income as wages (or payments instead of wages) for the time you are absent from work because of permanent and
total disability.
Payments that are not disability income.
Lump-sum payments:Accrued annual leaveAny payment you receive from a plan that does not provide for disability retirement is not disability
income. Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income.
Age:Mandatory retirement ageMandatory retirement ageFor purposes of the credit for the elderly or the disabled, disability income does not include amounts
you receive after you reach mandatory retirement age. Mandatory retirement age is the age set by your employer at which you would have had to retire,
had you not become disabled.
<ROM>Table 1.</ROM> <BLD>Initial Amounts</BLD>IF your filing status is...THEN enter on line 10 of Schedule R (Form 1040) or Schedule 3 (Form 1040A)...single,head of household, or qualifying widow(er) with dependent child and,
by the end of 2005, you were•65 or older$5,000•under 65 and retired on permanent and total disability
1$5,000married filing a joint return and by the end of 2005•both of you were 65 or older$7,500•both of you were under 65 and one of you retired on permanent and total disability
1$5,000•both of you were under 65 and both of you retired on permanent and total disability
2$7,500•one of you was 65 or older, and the other was under 65 and retired on permanent
and total disability
3$7,500•one of you was 65 or older, and the other was under 65 and not retired on permanent
and total disability$5,000married filing a separate return and you did not live with your spouse at any time during the year
and, by the end of 2005, you were•65 or older$3,750•under 65 and retired on permanent and total disability
1$3,750
Tables and figures:Initial amounts (Table 1)
1 Amount cannot be more than the taxable disability income.2 Amount cannot be more than your combined taxable disability income.3 Amount is $5,000 plus the taxable disability income of the spouse under age 65, but not more than $7,500.
Income LimitsAdjusted gross income (AGI):Income limits forIncome limitsTables and figures:Income limits (Figure B)
To determine if you can claim the credit, you must consider two income limits. The first limit is the amount of your adjusted gross income (AGI).
The second limit is the amount of nontaxable social security and other nontaxable pensions you received. The limits are shown in Figure B.
If both your AGI and your nontaxable pensions are less than the income limits, you may be able to claim the credit. See Figuring the Credit,
next.
If either your AGI or your nontaxable pensions are equal to or more than the income limits, you cannot take the credit.
Figuring the creditFiguring the Credit
You can figure the credit yourself (see the explanation that follows), or the IRS will figure it for you. See Credit Figured for You,
later.
Figuring the credit yourself.
Form 1040, Schedule RForm 1040A, Schedule 3If you figure the credit yourself, fill out the front of either Schedule R (if you are filing Form 1040)
or Schedule 3 (if you are filing Form 1040A). Next, fill out Part III of either Schedule R or Schedule 3.
There are four steps in Part III to determine the amount of your credit:
Determine your initial amount (lines 10–12).
Total any nontaxable social security and certain other nontaxable pensions and benefits you received (lines 13a, 13b, and 13c).
Determine your excess adjusted gross income (lines 14–17).
Determine your credit (lines 18–24 of Schedule R or lines 18–22 of Schedule 3).
These steps are discussed in more detail next.
Step 1. Determine Initial AmountFiguring the credit:Determine initial amount
To figure the credit, you must first determine your initial amount. See Table 1.
Initial amounts for persons under age 65.Initial amounts for persons under age 65
If you are a qualified individual under age 65, your initial amount cannot be more than your taxable disability income.
Step 2. Total Certain Nontaxable Pensions and Benefits
Step 2 is to figure the total amount of nontaxable social security and certain other nontaxable payments you received during the year.
Enter these nontaxable payments on lines 13a or 13b and total them on line 13c. If you are married filing a joint return, you must enter the
combined amount of nontaxable payments both you and your spouse receive.
Worksheets are provided in the instructions for Forms 1040 and 1040A to help you determine if any part of your social security benefits (or
equivalent railroad retirement benefits) is taxable.
Include the following nontaxable payments in the amounts you enter on lines 13a and 13b.
Nontaxable social security payments. This is the nontaxable part of the amount of benefits shown in box 5 of Form SSA-1099, Social Security
Benefit Statement, which includes disability benefits, before deducting any amounts withheld to pay premiums on supplementary Medicare insurance, and
before any reduction because of receipt of a benefit under workers' compensation.
Lump-sum payments:Death benefits paid to surviving spouse or childDo not include a lump-sum death benefit payment you may receive as a
surviving spouse, or a surviving child's insurance benefit payments you may receive as a guardian.
Form SSA-1099:Social security benefit statementSocial security payments
Social security equivalent part of tier 1 railroad retirement pension payments that are not taxed. This is the nontaxable part of the amount
of benefits shown in box 5 of Form RRB-1099, Payments by the Railroad Retirement Board.
Form RRB-1099:Payments by Railroad Retirement Board
Nontaxable pension or annuity payments or disability benefits that are paid under a law administered by the Department of Veterans Affairs
(VA).
Do not include amounts received as a pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in the
armed forces of any country or in the National Oceanic and Atmospheric Administration or the Public Health Service, or as a disability annuity under
section 808 of the Foreign Service Act of 1980.
Veterans:Exclusion of nontaxable pension or annuity payment or disability benefits
Pension or annuity payments or disability benefits that are excluded from income under any provision of federal law other than the Internal
Revenue Code.
Do not include amounts that are a return of your cost of a pension or annuity. These amounts do not reduce your initial amount.
Disability benefits:Nontaxable by lawForeign military service:Pension, annuity, or disability benefit fromForeign Service:Pension, annuity, or disability benefit fromNational Oceanic and Atmospheric Administration:Pension, annuity, or disability benefit fromNontaxable paymentsPension or annuity payments:Nontaxable by lawPublic Health Service:Pension, annuity, or disability benefit from
You should be sure to take into account all of the nontaxable amounts you receive. These amounts are verified by the IRS through information
supplied by other government agencies.
Step 3. Determine Excess Adjusted Gross IncomeAdjusted gross income (AGI):Determine excess AGIExcess adjusted gross incomeFiguring the credit:Determine excess AGI
You also must reduce your initial amount by your excess adjusted gross income. Figure your excess adjusted gross income on lines 14–17.
You figure your excess adjusted gross income as follows:
Subtract from your adjusted gross income (line 38 of Form 1040 or line 22 of Form 1040A) the amount shown for your filing status in the
following list.
$7,500 if you are single, a head of household, or a qualifying widow(er) with a dependent child,
$10,000 if you are married filing a joint return, or
$5,000 if you are married filing a separate return and you and your spouse did not live in the same household at any time during the tax
year.
Divide the result of (1) by 2.
Step 4. Determine Your CreditFiguring the credit:Determine if you can take the credit
To determine if you can take the credit, you must add the amounts you figured in Step 2 and Step 3.
IF the total of Steps 2 and 3 is ...THEN ...equal to or more than the amount in Step 1you cannot take the credit.less than the amount in Step 1you can take the credit.
Figuring the credit.
If you can take the credit, subtract the total of Step 2 and Step 3 from the amount in Step 1 and multiply the result by 15%.
In certain cases, the amount of your credit may be limited. See Limit on credit, later.
Example.
You are 66 years old and your spouse is 64. Your spouse is not disabled. You file a joint return on Form 1040. Your adjusted gross income is
$14,630. Together you received $3,200 from social security, which was nontaxable. You figure the credit as follows:
1.Initial amount$5,0002.Subtract from line 1 the total of:a.Nontaxable social security
and other nontaxable pensions$3,200b.Excess adjusted gross income
($14,630 − $10,000) ÷ 22,3155,5153.Balance (not less than -0-)-0-4.Credit$ 0
You cannot take the credit because your nontaxable social security (line 2a) plus your excess adjusted gross income (line 2b) is more than your
amount on line 1.
Limit on credit.Limit on credit
The amount of credit you can claim may be limited.
Figure any limit on your credit on lines 21–24 of Schedule R or lines 21–22 of Schedule 3.
Credit Figured for YouFiguring the credit:Having IRS figure the credit for you
If you choose to have the Internal Revenue Service (IRS) figure the credit for you, read the following discussion for the form you will file (Form
1040 or Form 1040A). If you want the IRS to figure your tax, see Publication 967.
Form 1040.Form 1040
Form 1040, Schedule RIf you want the IRS to figure your credit, attach Schedule R to your return and enter CFE on the
dotted line next to line 49 of Form 1040. Check the box in Part I of Schedule R for your filing status and age. Fill in Part II and lines 11 and 13 of
Part III if they apply to you.
Form 1040A.Form 1040A
Form 1040A, Schedule 3If you want the IRS to figure your credit, attach Schedule 3 to your return and print CFE next to
line 30 of Form 1040A. Check the box in Part I of Schedule 3 for your filing status and age. Fill in Part II and lines 11 and 13 of Part III, if they
apply to you.
Examples
The following examples illustrate the credit for the elderly or the disabled. The initial amounts are taken from Table 1.
Example 1.
James Davis is 58 years old, single, and files Form 1040A. In 1998 he retired on permanent and total disability, and he is still permanently and
totally disabled. He got the required physician's statement in 1998 and kept it with his tax records. His physician signed on line B of the statement.
This year James checks the box in Part II of Schedule 3. He does not need to get another statement for 2005.
He received the following income for the year:
Nontaxable social security $ 1,500Interest (taxable)100Taxable disability pension 11,400
James' adjusted gross income is $11,500 ($11,400 + $100). He figures the credit on Schedule 3 as follows:
1.Initial amount$ 5,000 2.Taxable disability pension11,400 3.Smaller of line 1 or line 25,000 4.Subtract from line 3 the total of:a.Nontaxable disability
benefits (social security) $1,500b.Excess adjusted gross income
($11,500 − $7,500) ÷ 22,0003,500 5.Balance (not less than -0-)1,500 6.Multiply line 5 by 15% (.15)225 7.Enter the amount from Form 1040A, line 28333 8.Enter any amount from Form 1040A, line 29-0- 9.Subtract line 8 from line 733310.Credit
(Enter the smaller of line 6 or line 9)$ 225
His credit is $225. He enters $225 on line 30 of Form 1040A. The Schedule 3 for James Davis is not shown.
Example 2.
William White is 53. His wife Helen is 49. William had a stroke 3 years ago and retired on permanent and total disability. He is still permanently
and totally disabled because of the stroke. In November of last year, Helen was injured in an accident at work and retired on permanent and total
disability.
William received nontaxable social security disability benefits of $3,000 during the year and a taxable disability pension of $6,000. Helen earned
$9,700 from her job and received a taxable disability pension of $1,000. Their joint return on Form 1040 shows adjusted gross income of $16,700
($6,000 + $9,700 + $1,000).
Helen got her doctor to complete the physician's statement in the instructions for Schedule R. Helen is not required to include the statement with
their return for the year, but she must keep it for her records.
William got a physician's statement for the year he had the stroke. His doctor had signed on line B of that physician's statement to certify that
William was permanently and totally disabled. William has kept the physician's statement with his records. He checks the box in Part II of Schedule R
and writes his first name in the space above line 2.
William and Helen use Schedule R to figure their $31 credit for the elderly or the disabled. They attach Schedule R to the joint return and enter
$31 on line 49 of Form 1040. See their filled-in Schedule R and Helen's filled-in physician's statement, later.
Instructions for Physician's StatementTaxpayer1. He or she cannot engage in any substantial gainful activity because of a physical or mental condition.If you retired after 1976, enter the date you retired in the space provided on the statement below.2. A physician determines that the disability has lasted or can be expected to last continuously for at least a year or
can lead to death.PhysicianA person is permanently and totally disabled if both of the following apply:Physician's Statement Keep for Your Records I certify that
Helen A. WhiteName of disabled personwas permanently and totally disabled on January 1, 1976, or January 1, 1977, or was permanently and totally
disabled on the date he or she retired. If retired after 1976, enter the date retired.
November 30, 2005Physician: Sign your name on either A or B below.A The disability has lasted or can be expected to last continuously for at least a
yearPhysician's signature DateB There is no reasonable probability that the disabled condition will ever improve Juanita D.
Doctor 2/7/06 Physician's signature DatePhysician's name Physician's addressJuanita D. Doctor 1900 Green St., Hometown, MD 20000
Example 3.
Jerry Ash is 68 years old and single and files Form 1040A. He received the following income for the year:
Nontaxable social security $2,000Interest (taxable)455Pension (all taxable)5,600Wages from a part-time job4,245
Jerry's adjusted gross income is $10,300 ($4,245 + $5,600 + $455). Jerry figures the credit on Schedule 3 (Form 1040A) as follows:
1.Initial amount$5,0002.Subtract the total of:a.Nontaxable social security and other nontaxable pensions $2,000b.Excess adjusted gross income
($10,300 − $7,500) ÷ 21,4003,4003.Balance (not less than -0-)1,6004.Multiply line 3 by 15% (.15)2405.Enter the amount from Form 1040A, line 28866.Enter any amount from Form 1040A, line 29-0-7.Subtract line 6 from line 5868.Credit
(Enter the smaller of line 4 or line 7)$ 86
Jerry's credit is $86. He files Schedule 3 (Form 1040A) and shows this amount on line 30 of Form 1040A. See the filled-in Schedule 3 for Jerry Ash,
later.
Figuring the creditSchedule R (Form 1040) Credit for the Elderly or the Disabled 2005Summary: This is an example of Schedule R (Form 1040) 2005, Page 1 with items completed per example in the text:Name(s) shown on Form 1040 field contains William M. White and Helen A. WhiteYour social security number field contains 220-00-3333Under
Part I: Check the Box for Your Filing Status and Age:In the section
Married filing jointly, line item
5. Both spouses were under 65, and both retired on permanent and total disability checkbox checkedUnder
Part II: Statement of Permanent and Total Disability:2. Due to your continued disabled condition, you were unable to engage in any substantial gainful activity in 2004, check this box
checkbox checked and William written above checkbox.Schedule R (Form 1040) 2005, Page 2Summary: This is an example of Schedule R (Form 1040) 2005, Page 2 with the following line items listed under
Part III: Figure Your Credit completed:10. If you checked (in Part I): Enter: field contains 7,50011. If you checked (in Part I): field contains 7,00012. If you completed line 11, enter the smaller of line 10 or line 11; all others, enter the amount from line 10 field contains
7,00013a. Nontaxable part of social security benefits and Nontaxable part of railroad retirement benefits treated as social security. See page
R-3. field contains 3,00013c. Add lines 13a and 13b. (even though these income items are not taxable, they must be included here to figure your credit.) If you did not
receive any of the types of nontaxable income listed on line 13a or 13b, enter 0 on line 13c. field contains 3,00014. Enter the amount from Form 1040, line 38 field contains 16,70015. If you checked (in Part I): Enter: field contains 10,00016. Subtract line 15 from line 14. If zero or less, enter 0 field contains 6,70017. Enter one-half of line 16 field contains 3,35018. Add lines 13c and 17 field contains 6,35019. Subtract line 18 from line 12. If zero or less, stop; you cannot take the credit. Otherwise, go to line 20 field contains
65020. Multiply line 19 by 15% (.15) field contains 9821. Enter the amount from Form 1040, line 45 field contains 3122. Add the amounts from Form 1040, lines 46 and 47, and enter the total field contains 023. Subtract line 22 from line 21 field contains 3124. Credit for the elderly or the disabled. Enter the smaller of line 20 or line 23 here and on Form 1040, line 48 field contains
31Schedule 3 (Form 1040A): Credit for the Elderly or the Disabled for Form 1040A Filers 2005Summary: This is an example of Schedule 3 (Form 1040A) 2005, Page 1 with items completed per example in the text:Name(s) shown on Form 1040 field contains Jerry A. AshYour social security number field contains 123-00-1234Under
Part I: Check the box for your filing status and age:In the section
Single, Head of household, or Qualifying widow(er) with dependent child, line item
1. You were 65 or older checkbox checkedExample 3. Schedule 3 (Form 1040A) 2005, Page 2Summary: This is an example of Schedule 3 (Form 1040A) 2005, Page 2 with items completed per example in the text:10. If you checked (in Part I): Enter: field contains 5,00012. If you completed line 11, enter the smaller of line 10 or line 11; all others, enter the amount from line 10. field contains
5,00013a. Nontaxable part of social security benefits and Nontaxable part of railroad retirement benefits treated as social security. See
instructions. field contains 2,00013b. Nontaxable veterans' pensions and Any other pension, annuity, or disability benefit that is excluded from income under any other
provision of law. See instructions. field contains 013c. Add lines 13a and 13b. (Even though these income items are not taxable, they must be included here to figure your credit.) If you did not
receive any of the types of nontaxable income listed on line 13a or 13b, enter 0 on line 13c. field contains 2,00014. Enter the amount from Form 1040A, line 22. field contains 10,30015. If you checked (in Part I): Enter: field contains 7,50016. Subtract line 15 from line 14. If zero or less, enter 0. field contains 2,80017. Enter one-half of line 16. field contains 1,40018. Add lines 13c and 17. field contains 3,40019. Subtract line 18 from line 12. If zero or less, stop; you cannot take the credit. Otherwise , go to line 20. field contains
1,60020. Multiply line 19 by 15% (.15). field contains 24021. Enter the amount from Form 1040A, line 28, minus any amount on Form 1040A, line 29. field contains 8622. Credit for the elderly or the disabled. Enter the smaller of line 20 or line 21 here and on Form 1040A, line 30. field contains
86
How To Get Tax HelpMore informationTax helpFree tax servicesTax helpHelpTax helpAssistanceTax helpPublicationsTax helpTTY/TDD information
You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several
ways. By selecting the method that is best for you, you will have quick and easy access to tax help.
Contacting your Taxpayer Advocate.Taxpayer Advocate
If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate.
The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that
have not been fixed through normal channels. While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up
problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.
To contact your Taxpayer Advocate:
Call the Taxpayer Advocate toll free at
1-877-777-4778.
Call, write, or fax the Taxpayer Advocate office in your area.
For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and
Vietnamese, in addition to English and Spanish).
Free tax services.
To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. It contains a list of free tax publications and an
index of tax topics. It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax
topics.
Internet. You can access the IRS website 24 hours a day, 7 days a week, at
www.irs.gov to:
E-file your return. Find out about commercial tax preparation and e-file services available free to eligible
taxpayers.
Check the status of your 2005 refund. Click on Where's My Refund. Be sure to wait at least 6 weeks from the date you filed your
return (3 weeks if you filed electronically). Have your 2005 tax return available because you will need to know your social security number, your
filing status, and the exact whole dollar amount of your refund.
Download forms, instructions, and publications.
Order IRS products online.
Research your tax questions online.
Search publications online by topic or keyword.
View Internal Revenue Bulletins (IRBs) published in the last few years.
Figure your withholding allowances using our Form W-4 calculator.
Sign up to receive local and national tax news by email.
Get information on starting and operating a small business.
Phone. Many services are available by phone.
Ordering forms, instructions, and publications. Call 1-800-829-3676 to order current-year forms, instructions, and publications
and prior-year forms and instructions. You should receive your order within 10 days.
Asking tax questions. Call the IRS with your tax questions at 1-800-829-1040.
Solving problems. You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. An
employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Call your local Taxpayer Assistance Center
for an appointment. To find the number, go to
www.irs.gov/localcontacts or
look in the phone book under United States Government, Internal Revenue Service.
TTY/TDD equipment. If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and
publications.
TeleTax topics. Call 1-800-829-4477 and press 2 to listen to pre-recorded messages covering various tax topics.
Refund information. If you would like to check the status of your 2005 refund, call 1-800-829-4477 and press 1 for automated
refund information or call 1-800-829-1954. Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically).
Have your 2005 tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount
of your refund.
Evaluating the quality of our telephone services. To ensure that IRS representatives give accurate, courteous, and professional answers,
we use several methods to evaluate the quality of our telephone services. One method is for a second IRS representative to sometimes listen in on or
record telephone calls. Another is to ask some callers to complete a short survey at the end of the call.
Walk-in. Many products and services are available on a walk-in basis.
Products. You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and
publications. Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores
have a collection of products available to print from a CD-ROM or photocopy from reproducible proofs. Also, some IRS offices and libraries have the
Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes.
Services. You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. An
employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. If you need to resolve a tax problem,
have questions about how the tax law applies to your individual tax return, or you're more comfortable talking with someone in person, visit your
local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. No appointment is necessary,
but if you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. A representative will
call you back within 2 business days to schedule an in-person appointment at your convenience. To find the number, go to
www.irs.gov/localcontacts or
look in the phone book under United States Government, Internal Revenue Service.
Mail. You can send your order for forms, instructions, and publications to the address below and receive a response within 10 business
days after your request is received.
National Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
CD-ROM for tax products. You can order Publication 1796, IRS Tax Products CD-ROM, and obtain:
A CD that is released twice so you have the latest products. The first release ships in late December and the final release ships in late
February.
Current-year forms, instructions, and publications.
Prior-year forms, instructions, and publications.
Tax Map: an electronic research tool and finding aid.
Tax law frequently asked questions (FAQs).
Tax Topics from the IRS telephone response system.
Fill-in, print, and save features for most tax forms.
Internal Revenue Bulletins.
Toll-free and email technical support.
Buy the CD-ROM from National Technical Information Service (NTIS) at
www.irs.gov/cdorders for $25 (no handling fee) or call 1-877-233-6767 toll free to buy the CD-ROM for $25 (plus a $5 handling fee).
CD-ROM for small businesses. Publication 3207, The Small Business Resource Guide CD-ROM for 2005, has a new look and enhanced navigation
features. This year's CD includes:
Helpful information, such as how to prepare a business plan, find financing for your business, and much more.
All the business tax forms, instructions, and publications needed to successfully manage a business.
Tax law changes for 2005.
IRS Tax Map to help you find forms, instructions, and publications by searching on a keyword or topic.
Web links to various government agencies, business associations, and IRS organizations.
Rate the Product survey—your opportunity to suggest changes for future editions.
An updated version of this CD is available each year in early April. You can get a free copy by calling 1-800-829-3676 or by visiting
www.irs.gov/smallbiz.
