Senior tax credit is a nonrefundable credit that helps seniors and people with disabilities reduce their tax bill. A nonrefundable tax credit means that you cannot receive a refund even the credit amount is larger than the taxes you owe.
To be eligible for senior tax credit, you need to be at least 65 years old. Also, you shall be a U.S. citizen or resident alien. And you have to meet certain income limits. As with other tax credits, the income limits of senior tax credit depends on the filing status. If you are single, head of household, or qualifying widow with dependent child, with your gross income under $17,500, you could earn a tax credit worth as much as $5000. If you file a joint return with your family, you could earn $7500 tax credit when your gross income is under $25,000.
It’s worth mentioning that even if you earn less than the income limits and meet all the requirements for this tax credit, sometimes you need to provide extra certification. It means you have to prove that you lack the ability to have gainful employment. You need to provide physician’s certification which states that you cannot engage in gainful activities because of your mental or physical condition. And the condition has lasted, or is expected to last, continuously for at least 12 months or is expected to result in death.
Once you are qualified, you can fill out Form 1040SR for the tax year to deduce your tax bill.