Schedule R Credit for the Elderly or the Disabled

If you are over age 65 or are retired due to a disability, you may be eligible for a separate tax credit designed to help the nation's seniors and disabled.

Even better than a deduction, the Senior Tax Credit for the Elderly and Disabled could take up to $7,500 directly off of your tax bill.

You must meet few sets of criteria.

You are at least age 65 or you are retired due to a disability.

To be qualified under the disability criteria, you must have a signed statement from a physician certifying that you can't "engage in gainful activity" because of a physical or mental condition. The same goes if the condition has either lasted for at least twelve months or is likely to do so, or that death is expected to result from the condition.

Another criteria is that your adjusted gross income (AGI) or your combination of non-taxable disability income, pension annuity income, and Social Security income falls below threshold limits.