Is the Elderly Tax Credit Refundable?
The senior tax credit for the elderly and disabled is non-refundable. This means that you cannot receive a credit larger than the remaining taxes you owe.
The tax credit for the elderly and disabled applies to the taxes you owe. For example, if you owe $2,500 in taxes, but you have a credit for $500, you will have to pay $2,000.
According to income eligibility criteria, to qualify for the elderly tax credit, your adjusted gross income (AGI) or a combination of your non-taxable income (disability, pension annuity income, and Social Security income) must fall below threshold limits listed in IRS Publication 524 – Credit for the Elderly or the Disabled.
To determine whether you qualify for this credit, you need to fill out Schedule R. IRS Publication 524.