What senior tax credits do and who might use them

A tax credit reduces the amount of federal income tax you owe, dollar for dollar. If you owe $800 in tax and you have a $500 credit, you owe $300. Some credits can even give you money back if the credit is larger than what you owe — these are called refundable credits.

The IRS offers several credits designed for people 65 and older, or for people who support aging relatives. The most common are the Credit for the Elderly and the Disabled, the Earned Income Tax Credit (EITC) if you still work part-time, and credits for dependent care or medical expenses. You claim these on your tax return, not on a separate form sent to the government.

Not every senior will have a tax credit available. Whether you do depends on your income, your filing status, and what expenses you had during the year. The IRS publishes worksheets and tables to help you figure out if you may have access to, and a tax preparer or volunteer can walk you through them.

Key Takeaways

  • The Credit for the Elderly and the Disabled is the main federal credit for seniors 65 and older, but your income and filing status determine whether you can use it.
  • Some credits are refundable, meaning you can receive money back from the IRS even if you owe no tax, while others only reduce what you owe.
  • You claim tax credits on your federal tax return (Form 1040) using worksheets or schedules the IRS provides, not by filing a separate process.
  • Free tax preparation help is available through AARP Tax-Aide and the Volunteer Income Tax information (VITA) program if you earn less than a certain amount.

The Credit for the Elderly and the Disabled

This is the main federal tax credit for seniors. You may be able to use it if you are 65 or older, or if you are under 65 but permanently and totally disabled. The credit reduces your tax based on your income and filing status — the lower your income, the larger the credit can be.

To claim it, you fill out Schedule R (Form 1040) and attach it to your tax return. The IRS provides a worksheet to calculate the credit amount. The worksheet asks for your adjusted gross income (AGI), your filing status, and any nontaxable Social Security benefits you received. If your income is above a certain threshold — which varies by filing status — the credit phases out and may disappear entirely.

This credit is not refundable, so it can only reduce the tax you owe to zero. If you owe no tax, the credit does not give you money back. However, if you have other refundable credits on your return, those can still result in a refund.

The Earned Income Tax Credit (EITC) for working seniors

If you are 65 or older and you earned income from work during the year, you may be able to claim the EITC. This credit is refundable, meaning it can give you money back even if you owe no tax. The amount depends on how much you earned and your filing status.

The EITC is designed for people with low to moderate income. If you earned more than a set amount — which changes each year — you will not may have access to. For 2024, the income limits are higher if you are married filing jointly than if you file as single or head of household.

You claim the EITC on Schedule EIC (Form 1040) or directly on your Form 1040 if you use tax software. The IRS website has an EITC calculator that can tell you whether you might may have access to and estimate the amount.

Credits for medical expenses and dependent care

If you paid medical expenses that were not covered by insurance, you may be able to deduct them on Schedule A (Form 1040). This is different from a credit — a deduction reduces your income before tax is calculated, rather than reducing the tax itself. You can only use this if your medical expenses exceed a certain percentage of your adjusted gross income.

If you paid someone to care for a dependent relative while you worked or looked for work, you may may have access to for the Dependent Care Credit. This applies if you paid a caregiver, adult day care, or a nursing home for a dependent who cannot care for themselves. You claim it on Form 2441 and attach it to your return.

If you are a caregiver for an aging parent or spouse and you paid out-of-pocket for their care, ask a tax preparer whether you might may have access to as their dependent. If you do, you may be able to claim them on your return and use the dependent exemption or credit.

How to find out what credits you might use

The IRS publishes Publication 524, "Credit for the Elderly or the Disabled," which walks through the rules and includes worksheets. You can read it free from IRS.gov or order a printed copy. The publication explains which credits explore to your situation and how to calculate each one.

If you use tax software, the program will ask you questions about your age, income, and expenses, and it will calculate your credits automatically. If you prepare your return by hand, you will need to use the IRS worksheets and tables.

Many seniors use free tax preparation help instead. AARP Tax-Aide and the Volunteer Income Tax information (VITA) program both offer free preparation if your income is below a certain level. These volunteers are trained to find credits you might miss. You can find a VITA site near you on the IRS website, or call AARP at 1-888-227-7669 to locate a Tax-Aide site.

What to bring when you file

To claim a tax credit, you will need your Social Security number, proof of your age (a birth certificate or driver's license), and documentation of any income or expenses the credit requires. For the Credit for the Elderly and the Disabled, you need your adjusted gross income from your tax return and a record of any nontaxable Social Security benefits.

If you are claiming a dependent care credit, bring receipts or a statement from the caregiver showing their name, address, and tax ID number. If you are claiming a medical expense deduction, bring receipts for the expenses and proof of what your insurance paid.

If you use a tax preparer or VITA volunteer, they will tell you what documents to bring. Bring more than you think you need — it is easier to have something and not use it than to come back later.

Frequently Asked Questions

Can I claim a tax credit if I do not owe any tax?

It depends on whether the credit is refundable. The Earned Income Tax Credit is refundable, so you can receive money back even if you owe no tax. The Credit for the Elderly and the Disabled is not refundable, so it can only reduce your tax to zero. If you have both types of credits, the refundable one can still result in a refund.

Do I have to file a tax return to claim a credit?

Yes. You claim tax credits on your federal tax return (Form 1040), not on a separate form. If you normally do not have to file because your income is below the filing threshold, but you have a refundable credit, you should file anyway to receive the credit money.

What if I am not sure whether I may have access to for a credit?

Use the IRS EITC calculator on IRS.gov, or contact a VITA volunteer or AARP Tax-Aide preparer. Both services are free and can review your situation to see which credits you might use. You can also call the IRS at 1-800-829-1040 with questions about a specific credit.

Can I claim a credit for my spouse if they do not file a tax return?

No. Each person must file their own return to claim a credit in their name. However, if you are married and file jointly, you can include both spouses' income and credits on one return. If your spouse does not have income or owes no tax, they do not need to file separately.

What happens if I claim a credit I do not may have access to for?

The IRS will review your return and either disallow the credit or ask you to repay it. If you made an honest mistake, you can amend your return using Form 1040-X. If you used a tax preparer or VITA volunteer and they made the error, they may help you file the amended return at no cost.