April and Joey are both 74 years old and received $1,500 in nontaxable social security benefits.Their AGI for the year was $18,000.How much can April and Joey claim as a credit for the elderly or the disabled?
A)$300.
B)$1,125.
C)$1,500.
D)$2,000.

Question

Quizplus · Accepted Answer

The credit for the elderly or the disabled is available to individuals who are 65 or older, or who are permanently and totally disabled. The amount of the credit depends on filing status, age, income, and the amount of nontaxable social security and other nontaxable pensions, annuities, or disability income received. Given April and Joey's age (both 74) and their AGI ($18,000) along with their nontaxable social security benefits ($1,500), the maximum credit they could claim, based on the IRS guidelines and the standard limitations for their situation, would likely be the lowest amount listed among the options provided, which is $300. The exact calculation would depend on the specifics of their income and deductions, but none of the higher amounts listed would typically be available for individuals with their financial profile.

April and Joey Are Both 74 Years Old and Received