A taxpayer must be what age to begin receiving the Credit for the Elderly or Disabled? Select one: a. 60 b. 65 c. 75 d. 70
The correct answer and explanation is:
The correct answer is b. 65.
The Credit for the Elderly or Disabled is a nonrefundable tax credit available to individuals who meet specific criteria, including age and income requirements. To be eligible for this credit, a taxpayer must be at least 65 years old by the end of the tax year. In addition to age, the taxpayer must either be 65 or older, or they must be permanently and totally disabled.
The purpose of this credit is to assist seniors or disabled individuals who may be living on fixed incomes, which can make it more difficult for them to cover rising living costs, including healthcare and basic expenses. In order to qualify for this credit, a taxpayer must also meet certain income limitations, which are based on their filing status (single, married, etc.) and their adjusted gross income (AGI). The IRS has established income thresholds that vary depending on the taxpayer’s filing status, and if a taxpayer exceeds these income thresholds, they may not be eligible for the credit.
The amount of the credit itself is determined by both the taxpayer’s income and filing status, as well as whether they are married or single. The credit can be claimed on Form 1040 and may reduce the taxpayer’s overall tax liability, thus providing some financial relief. This credit is an important part of the tax code, aiming to reduce the tax burden on elderly or disabled individuals who may struggle with financial challenges.
To summarize, the minimum age requirement to begin receiving the Credit for the Elderly or Disabled is 65 years old, and eligibility is based on both age and income factors.