Disability Retirement Deduction
To take this deduction you must have: - Been permanently and totally disabled at the time of retirement;
- Retired on disability before December 31, 2005; and
- Received disability retirement income during 2005.
If you meet these qualifications, you must complete Schedule IT-2440 and have it signed by your doctor to claim this deduction. For more information about this deduction, contact the Department to get Income Tax Information Bulletin #70 and Schedule IT-2440. This schedule must be attached to your tax return when claiming this deduction.
This deduction is limited to a maximum of $5,200 per qualifying individual.
Note: Social Security disability income does not qualify for this deduction because Indiana does not tax this income.
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