Credit for the Elderly or Disabled, and Free Tax Preparation

What this program is, in plain English

There is a federal tax credit specifically for people who are 65 or older, or who retired on permanent disability. It is worth up to $1,125 for a married couple where both qualify, and it reduces the tax you owe dollar for dollar. It is claimed on Schedule R. Very few people claim it because very few people know it exists. Separately, the IRS funds free tax preparation for older adults through AARP Foundation Tax-Aide and through VITA, the Volunteer Income Tax Assistance program. The preparers are IRS-certified, the service is free, and they know which senior credits to look for. You do not need to be an AARP member.

What you actually get

A nonrefundable tax credit of up to $1,125, plus free preparation of your return by a trained volunteer.

Who qualifies

• You are 65 or older.
• Income limit: Not yet verified — call to confirm
• The credit phases out at fairly low income levels. Free tax preparation is generally available to anyone 50 or older or with low to moderate income, with no age limit at Tax-Aide.

What to have ready

• Photo identification
• Social Security cards
• Last year's tax return
• SSA-1099 and any 1099 or W-2 forms
• Records of medical and property tax payments

How to apply

This program is run by Internal Revenue Service; free preparation delivered by AARP Foundation Tax-Aide and VITA volunteers. Most decisions take Claimed on your annual return.