Is my retirement income taxable to Indiana?

 Indiana allows you to deduct your disability retirement income as long as you meet all of 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 does not qualify for this deduction as Indiana does not tax it at all.

Program Entry

To make this manual entry, go to:

1. State
2. Edit (three dots)
3. Subtractions from Income
4. Other deductions
5. Choose Disability retirement deduction from the drop down

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