Indiana provides a deduction for certain disability retirement income received by taxpayers who were permanently and totally disabled when they retired. This deduction is calculated on Form IN-2440.
Program Entry
Indiana Return → Subtractions from Income → Disability Retirement Deduction
The Following Information Can Be Added
Disability Retirement Deduction
Indicates whether the taxpayer qualifies to complete Form IN-2440.
Spouse Disability Retirement Deduction
Used to enter disability retirement deduction information for a spouse.
Date Retired
Required if the taxpayer was disabled for the entire year and retired before the applicable tax year deadline.
Pay Period
The frequency at which disability payments were received.
Number of Payments Received
Required if disability income was not received for the entire year.
Number of Full Weeks Disability Income Was Received
Required if disability income was not received for the entire year.
Notes
- Taxpayers are only eligible for this deduction if they were permanently and totally disabled when they retired.
- The deduction is calculated using Form IN-2440.
- If disability income was received for the entire year, the number of payments received and number of full weeks receiving disability income are generally not required.
- Separate disability retirement deduction information may be entered for the taxpayer and spouse when applicable.
- Retain documentation supporting retirement status, disability status, and disability income received.