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Contact: Kimberly Collins
Phone: 202 224-5364 |
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Smith-Bingaman Bill Will Modernize the Tax Credit for Senior Citizens and People with Disabilities
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April 16th, 2008 - Washington, D.C - U.S. Senators Gordon H. Smith (R-OR) and Jeff Bingaman (D-NM) today introduced legislation to modernize the tax credit for senior citizens and people with disabilities.
Under current law, people over the age of 65 and people who cannot work because of a disability are eligible for a federal tax credit. However, because rates and income requirements have not been adjusted to reflect inflation since 1983, that credit provides only half as much help today as it did in 1983.
Currently, individuals earning $17,500 or less can qualify for a tax credit of up to $750. For married taxpayers the income limit is $25,000 and the maximum tax credit is $1,125. The Senators’ bill would make annual cost of living adjustments (COLA) to both the income limits and the amount of the tax credit.
“The elderly and permanently disabled are among those in greatest need of tax assistance,” said Smith. “Yet, many of Oregon’s seniors and disabled are being denied needed help because the tax credit has not been adjusted for inflation. This common-sense legislation will index the elderly and disabled tax credit to account for inflation, which will make a difference in the lives of many of those whom the credit was intended help.”
“The tax credit and income caps have not changed since the 1980s. During that time, inflation has both eroded the value of the credit and reduced the number of taxpayers eligible for it,” Bingaman said. “Many New Mexico seniors depend on this credit and we need to ensure they are not being shortchanged.”
In Oregon, there are approximately 477,000 persons over the age of 65 who could be eligible for the credit.
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