Schedule R (Form 1040) Department of the Treasury Internal Revenue Service (99) Name(s) shown on Form 1040 Credit for the Elderly or the Disabled Complete and attach to Form 1040. Go to www.irs.gov/scheduler for instructions and the latest information. 1040 R OMB No. 1545-0074 2018 Attachment Sequence No. 16 Your social security number You may be able to take this credit and reduce your tax if by the end of 2018: You were age 65 or older or You were under age 65, you retired on permanent and total disability, and you received taxable. But you must also meet other tests. See instructions. TIP In most cases, the IRS can figure the credit for you. See instructions. Part I Check the Box for Your Filing Status and Age If your filing status is: And by the end of 2018: Check only one box: Single, Head of household, or Qualifying widow(er) 1 You were 65 or older.................... 1 2 You were under 65 and you retired on permanent and total disability.. 2 3 Both spouses were 65 or older................. 3 4 Both spouses were under 65, but only one spouse retired on permanent and total disability....................... 4 Married filing jointly 5 Both spouses were under 65, and both retired on permanent and total disability......................... 5 6 One spouse was 65 or older, and the other spouse was under 65 and retired on permanent and total disability................ 6 7 One spouse was 65 or older, and the other spouse was under 65 and not retired on permanent and total disability............. 7 Married filing separately 8 You were 65 or older and you lived apart from your spouse for all of 2018. 8 9 You were under 65, you retired on permanent and total disability, and you lived apart from your spouse for all of 2018............ 9 Did you check box 1, 3, 7, or 8? Yes Skip Part II and complete Part III on the back. No Complete Parts II and III. Part II Statement of Permanent and Total Disability (Complete only if you checked box 2, 4, 5, 6, or 9 above.) If: 1 You filed a physician s statement for this disability for 1983 or an earlier year, or you filed or got a statement for tax years after 1983 and your physician signed line B on the statement, and 2 Due to your continued disabled condition, you were unable to engage in any substantial gainful activity in 2018, check this box............................. If you checked this box, you don t have to get another statement for 2018. If you didn t check this box, have your physician complete the statement in the instructions. You must keep the statement for your records. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11359K Schedule R (Form 1040) 2018
Schedule R (Form 1040) 2018 Page 2 Part III Figure Your Credit 10 If you checked (in Part I): Enter: Box 1, 2, 4, or 7............ $5,000 Box 3, 5, or 6............. $7,500 Box 8 or 9.............. $3,750 Did you check box 2, 4, 5, 6, or 9 in Part I? }.......... 10 Yes You must complete line 11. No Enter the amount from line 10 on line 12 and go to line 13. 11 If you checked (in Part I): Box 6, add $5,000 to the taxable of the spouse who was under age 65. Enter the total. Box 2, 4, or 9, enter your taxable. Box 5, add your taxable to your spouse s taxable. Enter the total. }....... 11 TIP For more details on what to include on line 11, see Figure Your Credit in the instructions. 12 If you completed line 11, enter the smaller of line 10 or line 11. All others, enter the amount from line 10......................... 12 13 Enter the following pensions, that you (and your spouse if filing jointly) received in 2018. a Nontaxable part of social security benefits and nontaxable part of railroad retirement benefits treated as social security (see instructions).................... 13a b Nontaxable veterans pensions and any other pension, annuity, or disability benefit that is excluded from income under any other provision of law (see instructions).......... 13b c Add lines 13a and 13b. (Even though these income items aren t taxable, they must be included here to figure your credit.) If you didn t receive any of the types of nontaxable income listed on line 13a or 13b, enter -0- on line 13c.......... 13c 14 Enter the amount from Form 1040, line 7............ 14 15 If you checked (in Part I): Enter: Box 1 or 2...... $7,500 } Box 3, 4, 5, 6, or 7... $10,000 15 Box 8 or 9...... $5,000 16 Subtract line 15 from line 14. If zero or less, enter -0-......... 16 17 Enter one-half of line 16............... 17 18 Add lines 13c and 17......................... 18 19 Subtract line 18 from line 12. If zero or less, stop; you can t take the credit. Otherwise, go to line 20............................ 19 20 Multiply line 19 by 15% (0.15)...................... 20 21 Tax liability limit. Enter the amount from the Credit Limit Worksheet in the instructions. 21 22 Credit for the elderly or the disabled. Enter the smaller of line 20 or line 21. Also enter this amount on Schedule 3 (Form 1040), line 54 (check box c and enter Sch R on the line next to that box)......................... 22 Schedule R (Form 1040) 2018
Department of the Treasury Internal Revenue Service 2018 Instructions for Schedule R (Form 1040) Credit for the Elderly or the Disabled Use Schedule R (Form 1040) to figure the credit for the elderly or the disabled. Future developments. For the latest information about developments related to Schedule R (Form 1040) and its instructions, such as legislation enacted after they were published, go to IRS.gov/ScheduleR. Additional information. See Pub. 524 for more details. Who Can Take the Credit The credit is based on your filing status, age, and income. If you are married and filing a joint return, it is also based on your spouse's age and income. You may be able to take this credit if either of the following applies. 1. You were age 65 or older at the end of 2018, or 2. You were under age 65 at the end of 2018 and you meet all of the following. a. You were permanently and totally disabled on the date you retired. If you retired before 1977, you must have been permanently and totally disabled on January 1, 1976, or January 1, 1977. b. You received taxable for 2018. c. On January 1, 2018, you hadn't reached mandatory retirement age (the age when your employer's retirement program would have required you to retire). For the definition of permanent and total disability, see What Is Permanent and Total Disability. Also, see the instructions for Part II. Statement of Permanent and Total Disability. Age 65 You are considered age 65 on the day before your 65th birthday. As a result, if you were born on January 1, 1954, you are considered to be age 65 at the end of 2018. Death of taxpayer. If you are preparing a return for someone who died in 2018, consider the taxpayer to be age 65 at the end of 2018 if he or she was age 65 or older on the day before his or her death. For example, if the taxpayer was born on February 14, 1953, and died on February 13, 2018, the taxpayer is considered age 65 at the time of death. However, if the taxpayer died on February 12, 2018, the taxpayer isn t considered age 65 at the time of death. Married Persons Filing Separate Returns If your filing status is married filing separately and you lived with your spouse at any time during 2018, you can't take the credit. Nonresident Aliens If you were a nonresident alien at any time during 2018, you may be able to take the credit only if your filing status is married filing jointly. Income Limits See Income Limits for the Credit for the Elderly or the Disabled. Want the IRS To Figure Your Credit? If you can take the credit and you want us to figure it for you, check the box in Part I of Schedule R (Form 1040) for your filing status and age. Fill in Part II and lines 11 and 13 of Part III if they apply to you. Then, check box c on Schedule 3 (Form 1040), line 54, and enter CFE on the line next to that box. Attach Schedule R (Form 1040) to your return. What Is Permanent and Total Disability? A person is permanently and totally disabled if both 1 and 2 below apply. 1. He or she can't engage in any substantial gainful activity because of a physical or mental condition. 2. A qualified physician determines that the condition has lasted or can be expected to last continuously for at least a year or can be expected to result in death. Examples 1 and 2, next, show situations in which the individuals are considered engaged in a substantial gainful activity. Example 3 shows a person who might not be considered engaged in a substantial gainful activity. In each example, the person was under age 65 at the end of the year. Aug 08, 2018 R-1 Cat. No. 11357O
Income Limits for the Credit for the Elderly or the Disabled IF you are... Single, head of household, or qualifying widow(er) Married filing jointly and only one spouse is eligible for the credit Married filing jointly and both spouses are eligible for the credit Married filing separately and you lived apart from your spouse for all of 2018 THEN you generally can't take the credit if: The amount on Form 1040, line 7 is... Or you received... $17,500 or more $5,000 or more of $20,000 or more $5,000 or more of $25,000 or more $7,500 or more of $12,500 or more $3,750 or more of Example 1. Sue retired on disability as a sales clerk. She now works as a full-time babysitter earning minimum wage. Although she does different work, Sue babysits on ordinary terms for the minimum wage. She can't take the credit because she is engaged in a substantial gainful activity. Example 2. Mary, the president of XYZ Corporation, retired on disability because of her terminal illness. On her doctor's advice, she works part-time as a manager and is paid more than the minimum wage. Her employer sets her days and hours. Although Mary's illness is terminal and she works part-time, the work is done at her employer's convenience. Mary is considered engaged in a substantial gainful activity and can't take the credit. Example 3. John, who retired on disability, took a job with a former employer on a trial basis. The purpose of the job was to see if John could do the work. The trial period lasted for some time during which John was paid at a rate equal to the minimum wage. But because of John's disability, he was given only light duties of a nonproductive, make-work nature. Unless the activity is both substantial and gainful, John isn't engaged in a substantial gainful activity. The activity was gainful because John was paid at a rate at or above the minimum wage. However, the activity wasn't substantial because the duties were of a nonproductive, make-work nature. More facts are needed to determine if John is able to engage in a substantial gainful activity. Disability Income Generally, is the total amount you were paid under your employer's accident and health plan or pension plan that is included in your income as wages or payments instead of wages for the time you were absent from work because of permanent and total disability. However, any payment you received from a plan that doesn't provide for disability retirement isn't. In figuring the credit, doesn't include any amount you received from your employer's pension plan after you have reached mandatory retirement age. For more details on, see Pub. 525. Part II. Statement of Permanent and Total Disability If you checked box 2, 4, 5, 6, or 9 in Part I and you didn't file a physician's statement for 1983 or an earlier year, or you filed or got a statement for tax years after 1983 and your physician signed on line A of the statement, you must have your physician complete a statement certifying that: You were permanently and totally disabled on the date you retired, or If you retired before 1977, you were permanently and totally disabled on January 1, 1976, or January 1, 1977. You don't have to file this statement with your tax return. But you must keep it for your records. You can use the physician's statement later in these instructions for this purpose. Your physician should show on the statement if the disability has lasted or can be expected to last continuously for at least a year, or if there is no reasonable probability that the disabled condition will ever improve. If you file a joint return and you checked box 5 in Part I, you and your spouse must each get a statement. If you filed a physician's statement for 1983 or an earlier year, or you filed or got a statement for tax years after 1983 and your physician signed on line B of the statement, you don't have to get another statement for 2018. But you must check the box on line 2 in Part II to certify all three of the following. 1. You filed or got a physician's statement in an earlier year. 2. You were permanently and totally disabled during 2018. 3. You were unable to engage in any substantial gainful activity during 2018 because of your physical or mental condition. R-2
Credit Limit Worksheet Line 21 Use this worksheet to figure your credit limit. Keep for Your Records 1. Enter the amount from Form 1040, line 11... 1. 2. Enter the amount from Schedule 3 (Form 1040), lines 48 and 49... 2. 3. Subtract line 2 from line 1. Enter this amount on Schedule R (Form 1040), line 21. But if zero or less, STOP, you can't take this credit... 3. If you checked box 4, 5, or 6 in Part I, enter in the space above the box on line 2 in Part II the first name(s) of the spouse(s) for whom the box is checked. If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can use VA Form 21-0172 instead of the physician's statement. VA Form 21-0172 must be signed by a person authorized by the VA to do so. You can get this form from your local VA regional office. Part III. Figure Your Credit Line 11 If you checked box 2, 4, 5, 6, or 9 in Part I, use the following chart to complete line 11. IF you checked... THEN enter on line 11... Box 6 Box 2, 4, or 9 Box 5 The total of $5,000 plus the disability income you reported on Form 1040 for the spouse who was under age 65. The total amount of you reported on Form 1040. The total amount of you reported on Form 1040 for both you and your spouse. Example 1. Bill, age 63, retired on permanent and total disability in 2018. He received $4,000 of taxable disability income that he reports on Form 1040, line 1. He is filing jointly with his wife who was age 67 in 2018, and he checked box 6 in Part I. On line 11, Bill enters $9,000 ($5,000 plus the $4,000 of he reports on Form 1040, line 1). Example 2. John checked box 2 in Part I and enters $5,000 on line 10. He received $3,000 of taxable disability income, which he enters on line 11. John also enters $3,000 on line 12 (the smaller of line 10 or line 11). The largest amount he can use to figure the credit is $3,000. Lines 13a Through 18 The amount on which you figure your credit can be reduced if you received certain types of. The amount can also be reduced if your adjusted gross income is over a certain amount, depending on which box you checked in Part I. Line 13a. Enter any social security benefits (before deduction of Medicare premiums) you (and your spouse if filing jointly) received for 2018 that aren't taxable. Also, enter any tier 1 railroad retirement benefits treated as social security that aren't taxable. If any of your social security or equivalent railroad retirement benefits are taxable, the amount to enter on this line is generally the difference between the amounts entered on Form 1040, line 5a and line 5b. If your social security or equivalent railroad retirement benefits are reduced because of workers'! CAUTION compensation benefits, treat the workers' compensation benefits as social security benefits when completing Schedule R (Form 1040), line 13a. Line 13b. Enter the total of the following types of income that you (and your spouse if filing jointly) received for 2018. Veterans' pensions (but not military disability pensions). Any other pension, annuity, or disability benefit that is excluded from income under any provision of federal law other than the Internal Revenue Code. Don't include amounts that are treated as a return of your cost of a pension or annuity. Don't include on line 13b any pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in the armed forces of any country, or in the National Oceanic and Atmospheric Administration or the Public Health Service. Also, don't include a disability annuity payable under section 808 of the Foreign Service Act of 1980. R-3
Instructions for Physician's Statement Taxpayer If you retired after 1976, enter the date you retired in the space provided on the statement below. Physician A person is permanently and totally disabled if both of the following apply. 1. He or she can't engage in any substantial gainful activity because of a physical or mental condition. 2. A physician determines that the disability has lasted or can be expected to last continuously for at least a year or can lead to death. Physician's Statement Keep for Your Records I certify that Name of disabled person was permanently and totally disabled on January 1, 1976, or January 1, 1977, or was permanently and totally disabled on the date he or she retired. If retired after 1976, enter the date retired. Physician: Sign your name on either line A or B below. A B The disability has lasted or can be expected to last continuously for at least a year... There is no reasonable probability that the disabled condition will ever improve... Physician's name Physician's signature Physician's signature Physician's address Date Date R-4