Current research indicates that individuals are likely to make errors when preparing their tax returns. The following tax tips were developed to help you avoid some of the common errors dealing with the standard deduction for seniors, the taxable amount of Social Security benefits, and the Credit for the Elderly and Disabled. In addition, you'll find links below to helpful publications as well as information on how to obtain free tax assistance.
Standard Deduction for Seniors - If you do not itemize your deductions, you can get a higher standard deduction amount if you and/or your spouse are 65 years old or older. You can get an even higher standard deduction amount if either you or your spouse is blind. (See Form 1040 and Form 1040A instructions.)
Taxable Amount of Social Security Benefits - When preparing your return, be especially careful when you calculate the taxable amount of your Social Security. Use the Social Security benefits worksheet found in the instructions for IRS Form 1040 and Form 1040A, and then double-check it before you fill out your tax return. See Publication 915, Social Security and Equivalent Railroad Retirement Benefits.
Credit for the Elderly or Disabled - You must file using Form 1040 or Form 1040A to receive the Credit for the Elderly or Disabled. You cannot get the Credit for the Elderly or Disabled if you file using Form 1040EZ. Be sure to apply for the Credit if you qualify; please read below for details.
Who Can Take the Credit: The Credit is based on your age, filing status and income. You may be able to take the Credit if:
Age: You and/or your spouse are either 65 years or older;or under age 65 years old and are permanently and totally disabled.
AND
Filing Status: Your income on Form 1040 line 28 is less than $17,500 (filing single), $20,000 (married filing jointly and only one spouse qualifies), $25,000 married filing jointly and both qualify), or 12,500 (married filing separately and lived apart from your spouse for all of 2007).
And, the non-taxable part of your Social Security or other nontaxable pensions, annuities or disability income is less than $5,000 (filing single), $5,000 (married filing jointly and only one spouse qualifies), $7,500 (married filing jointly and both qualify), or $3,750 (married filing separately and lived apart from your spouse for all of 2007).
Calculating the Credit: If you would like IRS to figure the amount of your Credit, then do the following:
If you use Form 1040:
Attach Schedule R to your return and enter "CFE" on the dotted line next to line 48 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.
If you use Form 1040A:
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.
Also see Publications 524(Credit for the Elderly or Disabled); 554 (Older Americans' Tax Guide); and 967 (The IRS Will Figure Your Tax.)
Free IRS Tax Return Preparation - IRS-sponsored volunteer tax assistance programs offer free tax help to seniors and to low to moderate-income (generally, $40,000 and below) people who cannot prepare their own tax returns.
Age: You and/or your spouse are either 65 years or older;or under age 65 years old and are permanently and totally disabled.
AND
Filing Status: Your income on Form 1040 line 28 is less than $17,500 (filing single), $20,000 (married filing jointly and only one spouse qualifies), $25,000 married filing jointly and both qualify), or 12,500 (married filing separately and lived apart from your spouse for all of 2007).
And, the non-taxable part of your Social Security or other nontaxable pensions, annuities or disability income is less than $5,000 (filing single), $5,000 (married filing jointly and only one spouse qualifies), $7,500 (married filing jointly and both qualify), or $3,750 (married filing separately and lived apart from your spouse for all of 2007).
Calculating the Credit: If you would like IRS to figure the amount of your Credit, then do the following:
If you use Form 1040:
Attach Schedule R to your return and enter "CFE" on the dotted line next to line 48 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.
If you use Form 1040A:
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.
Also see Publications 524(Credit for the Elderly or Disabled); 554 (Older Americans' Tax Guide); and 967 (The IRS Will Figure Your Tax.)
Free IRS Tax Return Preparation - IRS-sponsored volunteer tax assistance programs offer free tax help to seniors and to low to moderate-income (generally, $40,000 and below) people who cannot prepare their own tax returns.
Additional Resources:
Publication 907, Tax Highlights for Persons with Disabilities
Publication 17, Your Federal Income Tax
Publication 3966, Living and Working with Disabilities
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