26 CFR 1.37-2 – Credit for individuals age 65 or over
(a) In general. This section illustrates the computation of the credit for the elderly in the case of an individual who has attained the age of 65 before the close of the taxable year. This section shall not apply to an individual for any taxable year for which the individual makes the election described in section 37(e)(2) and paragraph (b) of § 1.37-3.
(b) Computation of credit. The credit for the elderly for an individual to whom this section applies equals 15 percent of the individual’s “section 37 amount” for the taxable year. An individual’s “section 37 amount” for a taxable year is the initial amount determined under section 37(b)(2), reduced as provided in section 37(b)(3) and (c)(1).
(c) Examples. The computation of the credit for the elderly for individuals to whom this section applies may be illustrated by the following examples:
Initial amount under section 37(b)(2) $2,500 Reductions required by section 37 (b)(3) and (c)(1): Social security payments $1,450 One-half the excess of adjusted gross income over $7,500 250 1,700 Section 37 amount 800 15 pct. of $800 $120 Initial amount under section 37(b)(2) $3,750 Reductions required by section 37 (b)(3): Railroad retirement pension $1,550 Social Security payments 1,200 2,750 Section 37 amount 1,000 15 pct. of $1,000 150 Limitation based upon amount of tax (derived from table reflecting allowance of general tax credit) $139