Elderly or Disabled individuals can get a reduction on their taxable income if they meet both of the following requirements:

• You are a qualified individual
  
• Your income is not over a certain limit
  

   

To be a qualified for the credit for the elderly or disable credit, you must be over the age of 65. You are considered to be 65 on the day before your birthday. For an example if you were born on January 1^st 1949, than you are considered to be 65 in 2013.

If under the age of 65 you must be retired on permanent and total disability and have taxable disability income such as social security disability benefits. You can also have a health and/or pension plan paid by your employer.

Permanent and total disability is defined as not being able to engage in any substantial gainful activity because of a physical or mental condition. Condition have to be constant over a year and be certified by a qualified physician. For example, a 53 years old who works as a full-time babysitter for the minimum wage as opposed to her previous job as a store attendant cannot take the credit. Even though she is doing different work, she is able to do the duties of her new job.

When determining if you qualify for the credit for the elderly or disabled, there are two things you must consider: First is your adjusted gross income (AGI) and second is social security and any other nontaxable income they must be less than the amounts for your filing status ( see chart below). If half of the Social Security income plus all other income exceeds the current IRS base amount for your filing status, part of your social security disability benefits will be taxable.