What is the Disability Retirement Deduction?
To take this deduction you must have:
If you meet the above requirements, you must complete Schedule IT-2440 and have it signed by your doctor to claim this deduction. 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.
- Been permanently and totally disabled at the time of retirement
- Retired on disability before December 31, 2012
- Received disability retirement income during 2012
If you meet the above requirements, you must complete Schedule IT-2440 and have it signed by your doctor to claim this deduction. 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.





