Indiana Disability Retirement Deduction
Indiana Disability Retirement Deduction
Disability Retirement Deduction 602
To take this deduction you must have been:
• Permanently and totally disabled at the time of retirement,
• Retired on disability before the end of the tax year, and
• Received disability retirement income during the tax year.
If you meet these qualifications, you must complete Schedule IT-2440 and have it signed by your doctor to claim this deduction. You must maintain the completed Schedule IT-2440 with your records as the department can require you to provide it at a later date.
For more information about this deduction see Income Tax Information Bulletin #70 at www.in.gov/dor/3650.htm and Schedule IT-2440 at www.in.gov/dor/6281.htm.
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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