You may exclude from your Iowa tax a portion of the disability pay you received in 2014 if you meet ALL of the following conditions:
- You received disability pay.
- You were not yet 65 when your tax year ended.
- You retired on disability and were totally and permanently disabled when you retired.
- On January 1, 2014, you had not yet reached the age when your employer's retirement program would have required you to retire.
- If you took the exclusion in a prior year and you didn't elect to treat disability income as a pension for federal purposes.
- If you were married at the end of the tax year and filed a joint federal income tax return for the year unless you didn't live with your spouse at any time during the year.