Indiana Disability Retirement Deduction

Article ID: 59177  

Indiana Disability Retirement Deduction


Disability Retirement Deduction 602

To take this deduction you must have been:

• Permanently and totally disabled at the time of retirement,

• Retired on disability before the end of the tax year, and

• Received disability retirement income during the tax year.

If you meet these qualifications, you must complete Schedule IT-2440 and have it signed by your doctor to claim this deduction. You must maintain the completed Schedule IT-2440 with your records as the department can require you to provide it at a later date.

For more information about this deduction see Income Tax Information Bulletin #70 at and Schedule IT-2440 at

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.

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