1. Credit for elderly or disabled
Before we dive into this matter, you must know that a tax credit refers to a direct reduction in your tax liability. Therefore, tax credits are actually better than tax deductions. So, the credit for the elderly or the disabled can offer you up to $7,500 if you’re married and $3,750 if you’re single.
As the name suggests, you are entitled to get this credit only if you’re a retiree or disabled. However, that’s not all. In case you’re younger than 65, you have to meet certain criteria. There are three main rules in this scenario:
- Being in permanent retirement or total disability;
- Received disability income for the 2020 tax year;
- And you hadn’t reached the retirement age (65) as of Jan. 1, 2020.
