Elderly and Disabled Credit: Income Limits

Because of the way the credit for the elderly and disabled is structured, your credit will be phased out completely under the following circumstances:

• If your filing status is single, head of household or surviving spouse with a dependent child, your credit will be zero if you have an adjusted gross income (AGI) for the year of $17,500 or more, or if you receive $5,000 or more in nontaxable Social Security, railroad retirement, or veteran's benefits or pension, annuity, or disability benefits that are excluded from your gross income.
• If you are married and file a joint return, and either you or your spouse (but not both) qualify for the credit, your credit will be zero if your joint return adjusted gross income is $20,000 or more, or if you or your spouse receive $5,000 or more in nontaxable Social Security, railroad retirement, or veterans' benefits or pension, annuity, or disability benefits that are excluded from gross income.
• If you are married and filing jointly, and both you and your spouse qualify for the credit, your credit will be zero if your joint return adjusted gross income is $25,000 or more, or if you or your spouse receive $7,500 or more in nontaxable Social Security, railroad retirement, or veterans' benefits or pension, annuity, or disability benefits that are excluded from gross income.
• If you are married and file a separate return, you will not be entitled to any credit unless you are living apart from your spouse for the entire tax year. Even if you qualify, your credit will be zero if you have an adjusted gross income of $12,500 or more, or receive $3,750 or more in nontaxable Social Security, railroad retirement, or veterans' benefits or pension, annuity, or disability benefit that are excluded from your gross income.

Clearly, before you can determine your credit amount, you'll have to determine how much (if any) of your Social Security benefits are taxable.