Despite the sound of it, this credit doesn't suddenly become available when you turn 65. It's available only to low-income taxpayers. You must be at least 65 or, if younger, you must be retired on total and permanent disability and have received taxable disability benefits during the year. If you pass either test, your income comes into play. TaxCut will determine if you get this credit.
Here are the general rules: You don't qualify if you are single, a head of household or a qualifying widow or widower with adjusted gross income (AGI) of $17,500 or more, or if you receive nontaxable Social Security or other nontaxable pension or disability benefits of $5,000 or more.
If you file a joint return, the rules differ depending on whether one spouse or both meet the age or disability requirements. If only one qualifies, the credit is out of reach if your AGI is $20,000 or more or your nontaxable benefits total $5,000 or more. If both spouses qualify, you can't take the credit if your AGI is $25,000 or more or your nontaxable benefits are $7,500 or more.
If you are married filing separately (which is permissible for this credit only if you and your spouse did not live together during the year), you can't qualify if your AGI is $12,500 or more or your nontaxable benefits are $3,750 or more.