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