{"data":{"id":"us/26-cfr-1.37-2","jurisdiction":"us","citation":"26 CFR 1.37-2","heading":"-2 Credit for individuals age 65 or over.","body":"(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.\n(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).\n(c) Examples. The computation of the credit for the elderly for individuals to whom this section applies may be illustrated by the following examples:\nExample 1.\nA, a single individual who is 67 years old, has adjusted gross income of $8,000 for the calendar year 1977. A also receives social security payments of $1,450 during 1977. A does not itemize deductions. A's credit for the elderly is $120, computed as follows:\nInitial amount under section 37(b)(2) $2,500\nReductions required by section 37 (b)(3) and (c)(1):\nSocial security payments $1,450\nOne-half the excess of adjusted gross income over $7,500 250 1,700\nSection 37 amount 800\n15 pct. of $800 $120\nA's tax from the tax tables, which reflect the allowance of the general tax credit, is $662. Accordingly, the limitation of section 37(c)(2) and paragraph (b) of § 1.37-1 does not reduce A's credit for the elderly.\nExample 2.\nH and W, who have both attained the age of 65, file a joint return for calendar year 1977. For that year H and W have adjusted gross income of $8,120; H also receives a railroad retirement pension of $1,550, and W receives social security payments of $1,200. H and W do not itemize deductions. The credit for the elderly allowed to H and W for 1977 is $139, computed as follows:\nInitial amount under section 37(b)(2) $3,750\nReductions required by section 37 (b)(3):\nRailroad retirement pension $1,550\nSocial Security payments 1,200 2,750\nSection 37 amount 1,000\n15 pct. of $1,000 150\nLimitation based upon amount of tax (derived from table reflecting allowance of general tax credit) $139\nSince the adjusted gross income of H and W is not greater than $10,000, no reduction of the initial amount is required under section 37 (c)(1).","path":["Title 26—Internal Revenue","CHAPTER I—INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY","SUBCHAPTER A—INCOME TAX","PART 1—INCOME TAXES"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-26.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:25:11Z","sha256":"5729b1d38332b500a2590af32d69216a2fae89f8b6ce94c6dab1e3f92d04de56","source_id":"us-cfr","stale":true,"prev":"us/26-cfr-1.37-1","next":"us/26-cfr-1.37-3"},"notice":"GroundRules: Original legal text. Not legal advice."}