Internal Revenue Code:Sec. 22. Credit for the elderly and the permanently and totally disabled

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Contents


Location in Internal Revenue Code


     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter A - Determination of Tax Liability
         PART IV - CREDITS AGAINST TAX
          Subpart A - Nonrefundable Personal Credits
        

Statute

    Sec. 22. Credit for the elderly and the permanently and totally
        disabled
 
    (a) General rule
      In the case of a qualified individual, there shall be allowed as
    a credit against the tax imposed by this chapter for the taxable
    year an amount equal to 15 percent of such individual's section 22
    amount for such taxable year.
    (b) Qualified individual
      For purposes of this section, the term ''qualified individual''
    means any individual -
        (1) who has attained age 65 before the close of the taxable
      year, or
        (2) who retired on disability before the close of the taxable
      year and who, when he retired, was permanently and totally
      disabled.
    (c) Section 22 amount
      For purposes of subsection (a) -
      (1) In general
        An individual's section 22 amount for the taxable year shall be
      the applicable initial amount determined under paragraph (2),
      reduced as provided in paragraph (3) and in subsection (d).
      (2) Initial amount
        (A) In general
          Except as provided in subparagraph (B), the initial amount
        shall be -
            (i) $5,000 in the case of a single individual, or a joint
          return where only one spouse is a qualified individual,
            (ii) $7,500 in the case of a joint return where both
          spouses are qualified individuals, or
            (iii) $3,750 in the case of a married individual filing a
          separate return.
        (B) Limitation in case of individuals who have not attained age
            65
          (i) In general
            In the case of a qualified individual who has not attained
          age 65 before the close of the taxable year, except as
          provided in clause (ii), the initial amount shall not exceed
          the disability income for the taxable year.
          (ii) Special rules in case of joint return
            In the case of a joint return where both spouses are
          qualified individuals and at least one spouse has not
          attained age 65 before the close of the taxable year -
              (I) if both spouses have not attained age 65 before the
            close of the taxable year, the initial amount shall not
            exceed the sum of such spouses' disability income, or
              (II) if one spouse has attained age 65 before the close
            of the taxable year, the initial amount shall not exceed
            the sum of $5,000 plus the disability income for the
            taxable year of the spouse who has not attained age 65
            before the close of the taxable year.
          (iii) Disability income
            For purposes of this subparagraph, the term ''disability
          income'' means the aggregate amount includable in the gross
          income of the individual for the taxable year under section
          72 or 105(a) to the extent such amount constitutes wages (or
          payments in lieu of wages) for the period during which the
          individual is absent from work on account of permanent and
          total disability.
      (3) Reduction
        (A) In general
          The reduction under this paragraph is an amount equal to the
        sum of the amounts received by the individual (or, in the case
        of a joint return, by either spouse) as a pension or annuity or
        as a disability benefit -
            (i) which is excluded from gross income and payable under -
              (I) title II of the Social Security Act,
              (II) the Railroad Retirement Act of 1974, or
              (III) a law administered by the Veterans' Administration,
            or
            (ii) which is excluded from gross income under any
          provision of law not contained in this title.
        No reduction shall be made under clause (i)(III) for any amount
        described in section 104(a)(4).
        (B) Treatment of certain workmen's compensation benefits
          For purposes of subparagraph (A), any amount treated as a
        social security benefit under section 86(d)(3) shall be treated
        as a disability benefit received under title II of the Social
        Security Act.
    (d) Adjusted gross income limitation
      If the adjusted gross income of the taxpayer exceeds -
        (1) $7,500 in the case of a single individual,
        (2) $10,000 in the case of a joint return, or
        (3) $5,000 in the case of a married individual filing a
      separate return,
    the section 22 amount shall be reduced by one-half of the excess of
    the adjusted gross income over $7,500, $10,000, or $5,000, as the
    case may be.
    (e) Definitions and special rules
      For purposes of this section -
      (1) Married couple must file joint return
        Except in the case of a husband and wife who live apart at all
      times during the taxable year, if the taxpayer is married at the
      close of the taxable year, the credit provided by this section
      shall be allowed only if the taxpayer and his spouse file a joint
      return for the taxable year.
      (2) Marital status
        Marital status shall be determined under section 7703.
      (3) Permanent and total disability defined
        An individual is permanently and totally disabled if he is
      unable to engage in any substantial gainful activity by reason of
      any medically determinable physical or mental impairment which
      can be expected to result in death or which has lasted or can be
      expected to last for a continuous period of not less than 12
      months.  An individual shall not be considered to be permanently
      and totally disabled unless he furnishes proof of the existence
      thereof in such form and manner, and at such times, as the
      Secretary may require.
    (f) Nonresident alien ineligible for credit
      No credit shall be allowed under this section to any nonresident
    alien.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 15, Sec. 37; Aug. 9, 1955, ch.
    659, Sec. 1, 69 Stat. 591; Jan. 28, 1956, ch. 17, Sec. 1, 70 Stat.
    8; Pub. L. 87-792, Sec. 7(a), Oct. 10, 1962, 76 Stat. 828; Pub. L.
    87-876, Sec. 1, Oct. 24, 1962, 76 Stat. 1199; Pub. L. 88-272, title
    I, Sec. 113(a), title II, Sec. 201(d)(3), 202(a), Feb. 26, 1964, 78
    Stat. 24, 32, 33; Pub. L. 93-406, title II, Sec. 2002(g)(1), Sept.
    2, 1974, 88 Stat. 968; Pub. L. 94-455, title V, Sec. 503(a), title
    XIX, Sec. 1901(c)(1), Oct. 4, 1976, 90 Stat. 1559, 1803; Pub. L.
    95-600, title VII, Sec. 701(a)(1)-(3), 703(j)(11), Nov. 6, 1978, 92
    Stat. 2897, 2942; Pub. L. 96-222, title I, Sec. 107(a)(1)(E)(i),
    Apr. 1, 1980, 94 Stat. 222; Pub. L. 97-34, title I, Sec. 111(b)(4),
    Aug. 13, 1981, 95 Stat. 194; Pub. L. 98-21, title I, Sec. 122(a),
    Apr. 20, 1983, 97 Stat. 85; renumbered Sec. 22 and amended Pub. L.
    98-369, div.  A, title IV, Sec. 471(c), 474(d), July 18, 1984, 98
    Stat. 826, 830; Pub. L. 99-514, title XIII, Sec. 1301(j)(8), Oct.
    22, 1986, 100 Stat. 2658.)
 

References in Text

                             REFERENCES IN TEXT
      The Social Security Act, referred to in subsec. (c)(3)(A)(i)(I),
    (B), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended.
    Title II of the Social Security Act is classified generally to
    subchapter II (Sec. 401 et seq.) of chapter 7 of Title 42, The
    Public Health and Welfare. For complete classification of this Act
    to the Code, see section 1305 of Title 42 and Tables.
      The Railroad Retirement Act of 1974, referred to in subsec.
    (c)(3)(A)(i)(II), is act Aug. 29, 1935, ch. 812, as amended
    generally by Pub. L. 93-445, title I, Sec. 101, Oct. 16, 1974, 88
    Stat. 1305, which is classified generally to subchapter IV (Sec.
    231 et seq.) of chapter 9 of Title 45, Railroads. For further
    details and complete classification of this Act to the Code, see
    Codification note set out preceding section 231 of Title 45,
    section 231t of Title 45, and Tables.
 

Miscellaneous

                                 AMENDMENTS
      1986 - Subsec. (e)(2). Pub. L. 99-514 substituted ''section
    7703'' for ''section 143''.
      1984 - Pub. L. 98-369, Sec. 471(c), renumbered section 37 of this
    title as this section.
      Subsec. (a). Pub. L. 98-369, Sec. 474(d)(1), substituted
    ''section 22 amount'' for ''section 37 amount''.
      Subsec. (c). Pub. L. 98-369, Sec. 474(d)(2), substituted
    ''Section 22 amount'' for ''Section 37 amount'' in heading.
      Subsec. (c)(1). Pub. L. 98-369, Sec. 474(d)(1), substituted
    ''section 22 amount'' for ''section 37 amount''.
      Subsec. (d). Pub. L. 98-369, Sec. 474(d)(3), amended subsec. (d)
    generally, striking out heading ''Limitations'' and designation
    ''(1)'' before ''Adjusted gross income limitation'' thereby making
    existing par. (1) the entire subsec. (d), redesignating existing
    subpars. (A), (B), and (C) as pars. (1), (2), and (3),
    respectively, and striking out provisions, formerly comprising par.
    (2), which had limited the amount of the credit allowed by this
    section for the taxable year to the amount of the tax imposed by
    this chapter for such taxable year.
      1983 - Pub. L. 98-21 inserted reference to permanently and
    totally disabled in section catchline.
      Subsec. (a). Pub. L. 98-21 amended subsec. (a) generally,
    substituting reference to a qualified individual for reference to
    an individual who has attained the age of 65 before the close of
    the taxable year.
      Subsec. (b). Pub. L. 98-21 in amending section generally added
    subsec. (b). Former subsec. (b) redesignated (c).
      Subsec. (c). Pub. L. 98-21 in amending section generally,
    redesignated former subsec. (b) as (c) and, in (c) as so
    redesignated, added par. (2) and struck out former (2), which had
    provided that the initial amount was $2,500 in the case of a single
    individual, $2,500 in the case of a joint return where only one
    spouse was eligible for the credit under subsection (a), $3,750 in
    the case of a joint return where both spouses were eligible for the
    credit under subsection (a), or $1,875 in the case of a married
    individual filing a separate return, redesignated existing
    provisions as par. (3)(A), inserted ''benefit'' after
    ''disability'' therein, struck out former subpars. (A) to (C),
    which had specified sources of amounts received under title II of
    the Social Security Act, under the Railroad Retirement Act of 1935
    or 1937, or otherwise excluded from gross income, added cls. (i)
    and (ii), substituted provision that no reduction would be made
    under cl. (i)(III) for any amount described in section 104(a)(4)
    for provision that no reduction would be made under former par. (3)
    for any amount excluded from gross income under section 72
    (relating to annuities), 101 (relating to life insurance proceeds),
    104 (relating to compensation for injuries or sickness), 105
    (relating to amounts received under accident and health plans), 120
    (relating to amounts received under qualified group legal services
    plans), 402 (relating to taxability of beneficiary of employees'
    trust), 403 (relating to taxation of employee annuities), or 405
    (relating to qualified bond purchase plans), and added subpar. (B).
    Former subsec. (c) redesignated (d).
      Subsec. (d). Pub. L. 98-21 in amending section generally
    redesignated former subsec. (c) as (d). Former subsec. (d)
    redesignated (e).
      Subsec. (e). Pub. L. 98-21 in amending section generally,
    redesignated former subsec. (d) as (e) and struck out provision
    that ''joint return'' meant the joint return of a husband and wife
    made under section 6013 and inserted provisions defining permanent
    and total disability.  Former subsec. (e), which provided for an
    election of prior law with respect to public retirement system
    income, was struck out.
      Subsec. (f). Pub. L. 98-21 reenacted subsec. (f) without change.
      1981 - Subsec. (e)(9)(B). Pub. L. 97-34 substituted ''section
    911(d)(2)'' for ''section 911(b)''.
      1978 - Subsec. (e)(2). Pub. L. 95-600, Sec. 701(a)(1), inserted
    ''(and whose gross income includes income described in paragraph
    (4)(B))'' after ''who has not attained age 65 before the close of
    the taxable year''.
      Subsec. (e)(4)(B). Pub. L. 95-600, Sec. 701(a)(2), (3)(B), as
    amended by Pub. L. 96-222, Sec. 107(a)(1)(E)(i), inserted ''and who
    performed the services giving rise to the pension or annuity (or is
    the spouse of the individual who performed the services)'' after
    ''before the close of the taxable year'' and substituted reference
    to paragraph (9)(A) for reference to paragraph (8)(A).
      Subsec. (e)(5)(B). Pub. L. 95-600, Sec. 701(a)(3)(C), as amended
    by Pub. L. 96-222, Sec. 107(a)(1)(E)(i), substituted reference to
    paragraph (9)(A) for reference to paragraph (8)(A).
      Subsec. (e)(8), (9). Pub. L. 95-600, Sec. 701(a)(3)(A), as
    amended by Pub. L. 96-222, Sec. 107(a)(1)(E)(i), added par. (8) and
    redesignated former par. (8) as (9).
      1976 - Pub. L. 94-455, Sec. 503(a), among other changes,
    substituted ''Credits for the elderly'' for ''Retirement income''
    in section catchline and in text substituted provisions permitting
    taxpayers who have all types of income to be eligible for the tax
    credit for provisions permitting taxpayers who have only retirement
    income to be eligible for the tax credit, eliminated provisions
    requiring taxpayers to earn $600 for the previous ten years for tax
    credit eligibility and provisions relating variations in treatment
    of married couples, and inserted provisions broadening coverage of
    the tax credit relief to low and middle income taxpayers.
      Pub. L. 94-455, Sec. 1901(c)(1), purported to amend subsec. (f)
    of this section by striking out ''a Territory''. The amendment
    could not be executed in view of the prior general amendment of
    this section by section 503(a) of Pub. L. 94-455. Section
    1901(c)(1) was repealed by section 703(j)(11) of Pub. L. 95-600.
      1974 - Subsec. (c)(1)(E), (F). Pub. L. 93-406 inserted reference
    in subpar. (E) to retirement bonds described in section 409 and
    added subpar. (F).
      1964 - Subsec. (a). Pub. L. 88-272, Sec. 113(a), 201(d)(3),
    substituted ''an amount equal to 17 percent, in the case of a
    taxable year beginning in 1964, or 15 percent, in the case of a
    taxable year beginning after December 31, 1964, of the amount
    received by such individual as retirement income (as defined in
    subsection (c) and as limited by subsection (d));'' for ''an amount
    equal to the amount received by such individual as retirement
    income (as defined in subsection (c) and as limited by subsection
    (d)), multiplied by the rate provided in section 1 for the first
    $2,000 of taxable income;'', and struck out ''section 34 (relating
    to credit for dividends received by individuals)'', before ''and
    section 35''.
      Subsecs. (i), (j). Pub. L. 88-272, Sec. 202(a), added subsec. (i)
    and redesignated former subsec. (i) as (j).
      1962 - Subsec. (c)(1). Pub. L. 87-792 inserted provisions in
    subpar. (A) requiring inclusion, in the case of an individual who
    is, or has been, an employee within the meaning of section
    401(c)(1), distributions by a trust described in section 401(a)
    which is exempt from tax under section 501(a), and added subpar.
    (E).
      Subsec. (d). Pub. L. 87-876 increased the limit on retirement
    income from $1,200 to $1,524, lowered the age requirement in par.
    (2)(A) from 65 to 62, and substituted provisions in par. (2)(B)
    which reduce the amount of retirement income for individuals who
    reach age 62, by one-half the amount of earned income in excess of
    $1,200 but not in excess of $1,700, and by the amount received over
    $1,700, for provisions which reduced such income by the amount
    earned over $1,200 by persons having reached age 65, and which
    defined income as in subsec. (g) of this section.
      1956 - Subsec. (d)(2). Act Jan. 28, 1956, reduced from 75 to 72
    the age at which there will be no limitation on earned income and
    increased from $900 to $1,200 the amount that an individual over 65
    can earn without reducing the $1,200 on which the retirement credit
    is computed.
      1955 - Subsec. (f). Act Aug. 9, 1955, extended the retirement
    income tax credit to members of the Armed Forces.
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by Pub. L. 99-514 applicable to bonds issued after Aug.
    15, 1986, except as otherwise provided, see sections 1311 to 1318
    of Pub. L. 99-514, set out as an Effective Date; Transitional Rules
    note under section 141 of this title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Amendment by section 474(d) of Pub. L. 98-369 applicable to
    taxable years beginning after Dec. 31, 1983, and to carrybacks from
    such years, see section 475(a) of Pub. L. 98-369, set out as a note
    under section 21 of this title.
                      EFFECTIVE DATE OF 1983 AMENDMENT
      Section 122(d) of Pub. L. 98-21, as amended by Pub. L. 99-514,
    Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
      ''(1) In general. - The amendments made by this section (amending
    sections 37 (now 22), 41 (now 24), 44A (now 21), 46, 53, 85, 105,
    128, 403, 415, 904, and 7871 of this title) shall apply to taxable
    years beginning after December 31, 1983.
      ''(2) Transitional rule. - If an individual's annuity starting
    date was deferred under section 105(d)(6) of the Internal Revenue
    Code of 1986 (formerly I.R.C. 1954) (as in effect on the day before
    the date of the enactment of this section (Apr. 20, 1983)), such
    deferral shall end on the first day of such individual's first
    taxable year beginning after December 31, 1983.''
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-34 applicable with respect to taxable
    years beginning after Dec. 31, 1981, see section 115 of Pub. L.
    97-34, set out as a note under section 911 of this title.
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Section 701(a)(4) of Pub. L. 95-600 provided that:
      ''(A) The amendments made by paragraphs (1) and (2) (amending
    this section) shall apply to taxable years beginning after December
    31, 1975.
      ''(B) The amendments made by paragraph (3) (amending this
    section) shall apply to taxable years beginning after December 31,
    1977.''
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by Pub. L. 94-455 applicable with respect to taxable
    years beginning after Dec. 31, 1975, see section 508 of Pub. L.
    94-455, set out as a note under section 3 of this title.
                      EFFECTIVE DATE OF 1974 AMENDMENT
      Amendment by Pub. L. 93-406 effective Jan. 1, 1974, see section
    2002(i)(2) of Pub. L. 93-406, set out as an Effective Date note
    under section 4973 of this title.
                      EFFECTIVE DATE OF 1964 AMENDMENT
      Amendment by section 113(a) of Pub. L. 88-272, except for
    purposes of section 21 (now 15) of this title, effective with
    respect to taxable years beginning after Dec. 31, 1963, see section
    131 of Pub. L. 88-272, set out as a note under section 1 of this
    title.
      Section 201(e) of Pub. L. 88-272 provided that: ''The amendments
    made by subsection (a) (amending section 34 of this title) shall
    apply with respect to taxable years ending after December 31, 1963.
    The amendment made by subsection (b) (repealing section 34 of this
    title) shall apply with respect to taxable years ending after
    December 31, 1964. The amendment made by subsection (c) (amending
    section 116 of this title) shall apply with respect to taxable
    years beginning after December 31, 1963. The amendments made by
    subsection (d) (amending sections 35, 37 (now 22), 46, 116, 584,
    642, 702, 854, 857, 871, 1375, and 6014 of this title) shall apply
    with respect to dividends received after December 31, 1964, in
    taxable years ending after such date''.
      Section 202(b) of Pub. L. 88-272 provided that: ''The amendments
    made by subsection (a) (amending this section) shall apply to
    taxable years beginning after December 31, 1963.''
                     EFFECTIVE DATE OF 1962 AMENDMENTS
      Section 2 of Pub. L. 87-876 provided that: ''The amendment made
    by the first section of this Act (amending this section) shall
    apply only to taxable years ending after the date of the enactment
    of this Act (Oct. 24, 1962).''
      Section 8 of Pub. L. 87-792 provided that: ''The amendments made
    by this Act (enacting sections 405 and 6047 of this title and
    amending sections 37 (now 22), 62, 72, 101, 104, 105, 172, 401 to
    404, 503, 805, 1361, 2039, 2517, 3306, 3401 and 7207 of this title)
    shall apply to taxable years beginning after December 31, 1962.''
                      EFFECTIVE DATE OF 1956 AMENDMENT
      Section 2 of act Jan. 28, 1956, provided that: ''The amendment
    made by the first section of this Act (amending this section) shall
    apply only with respect to taxable years beginning after December
    31, 1955.''
                      EFFECTIVE DATE OF 1955 AMENDMENT
      Section 2 of act Aug. 9, 1955, provided that: ''The amendment
    made by this Act (amending this section) shall be applicable to
    taxable years beginning after December 31, 1954.''
     DETERMINATION OF RETIREMENT INCOME CREDIT UNDER PROVISIONS AS THEY
           EXISTED PRIOR TO AMENDMENT BY PUB. L. 94-455 ELECTION
      Pub. L. 95-30, title IV, Sec. 403, May 23, 1977, 91 Stat. 155, as
    amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095,
    provided that: ''A taxpayer may elect (at such time and in such
    manner as the Secretary of the Treasury or his delegate shall
    prescribe) to determine the amount of his credit under section 37
    (now 22) of the Internal Revenue Code of 1986 (formerly I.R.C.
    1954) for his first taxable year beginning in 1976 under the
    provisions of such section as they existed before the amendment
    made by section 503 of the Tax Reform Act of 1976 (Pub. L.
    94-455).''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 32, 86, 151, 415 of this
    title.
 

Personal tools