Is my retirement income taxable to Indiana?

 Indiana allows you to claim the Disability Retirement Deduction if you meet all the following:

• You were permanently and totally disabled at the time you retired
• Retired on disability before the end of the tax year, AND
• Received disability retirement income during the tax year.

This deduction is limited to a maximum of $5,200 per qualifying individual. Social Security benefits do not qualify for this deduction as Indiana does not tax it at all.

Program Entry

To make this manual entry, go to:

1. State Section
2. Edit (three dots) Indiana state return
3. Subtractions from Income
4. Disability Retirement Deduction

See also Is my military pension/retirement income taxable to Indiana? .