Disability Income Exclusion
If you are retired on permanent and total disability and have included your disability income on line 1 of Form 1, you may be able to subtract up to $5,200 of your disability income.
You must meet ALL these tests:
• You did not reach mandatory retirement age before January 1, 2019.
• You were under age 65 on December 31, 2019.
• You were permanently and totally disabled – a. When you retired, or b. On January 1, 1976, or January 1, 1977, if you retired before January 1, 1977, on disability or under circumstances which entitled you to retire on disability.
• If you were married at the end of 2019, you must file a joint return.
• You did not in any year prior to 1984 choose to treat your disability income as a pension instead of taking the exclusion.
• Your federal adjusted gross income is less than $20,200 ($25,400 if married and both spouses are eligible).
Compute your exclusion on Wisconsin Schedule 2440W, Disability Income Exclusion. Enclose Schedule 2440W with your Form 1. See page 10 for information on how to get this schedule.