Publication 721 - Tax Guide To U.s. Civil Service Retirement Benefits - 2011 Page 18
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31•
Payment for unused annual leave. If you retire on disa-
A federal firefighter, law enforcement officer, nuclear
materials courier, or member of the Capitol or Su-
bility, any payment for your unused annual leave is taxed
preme Court Police who is otherwise eligible for im-
as wages in the tax year you receive the payment.
mediate retirement generally must retire by the last
day of the month in which he or she reaches age 57
Credit for the Elderly or the Disabled
or, if later, completes 20 years of service.
You can take the credit for the elderly or the disabled if:
•
Figuring the credit. If you figure the credit yourself, first
You are a qualified individual, and
fill out the front of Schedule R. Next, fill out Part III of the
•
Your income is not more than certain limits.
schedule.
If you want the Internal Revenue Service to figure your
You are a qualified individual for this credit if you are a
tax and credits, including the credit for the elderly or the
U.S. citizen or resident alien and, at the end of the tax year,
disabled, see the Instructions for Schedule R (Form 1040A
you are:
or 1040).
1. Age 65 or older, or
More information. For detailed information about this
credit, get Publication 524, Credit for the Elderly or the
2. Under age 65, retired on permanent and total disabil-
Disabled.
ity, and
a. Received taxable disability income, and
Part IV
b. Did not reach mandatory retirement age (defined
Rules for Survivors
later) before the tax year.
of Federal Employees
You are retired on permanent and total disability if:
•
You were permanently and totally disabled when you
This part of the publication is for survivors of federal em-
retired, and
ployees. It explains how to treat amounts you receive
•
You retired on disability before the close of the tax
because of the employee’s death. If you are the survivor of
year.
a federal retiree, see
Part
V.
Even if you do not retire formally, you may be considered
Employee earnings. Salary or wages earned by a federal
retired on disability when you have stopped working be-
employee but paid to the employee’s survivor or benefi-
cause of your disability.
ciary after the employee’s death are income in respect of
the decedent. This income is taxable to the survivor or
beneficiary. This treatment also applies to payments for
Permanently and totally disabled. You are permanently
accrued annual leave.
and totally disabled if you cannot engage in any substantial
gainful activity because of your physical or mental condi-
Dependents of public safety officers. The Public Safety
tion. A physician must certify that the condition has lasted
Officers’ Benefits program, administered through the Bu-
or can be expected to last continuously for 12 months or
reau of Justice Assistance (BJA), provides a tax-free death
more, or that the condition can be expected to result in
benefit to eligible survivors of public safety officers whose
death. See Physician’s statement, next. Substantial gainful
death is the direct and proximate result of a traumatic injury
activity is the performance of significant duties over a
sustained in the line of duty. The death benefit is not
reasonable period of time while working for pay or profit, or
includible in the decedent’s gross estate for federal estate
in work generally done for pay or profit.
tax purposes or the survivor’s gross income for federal
income tax purposes.
A public safety officer is a law enforcement officer,
Physician’s statement. If you are under 65, you must
firefighter, or member of a public rescue squad or ambu-
have your physician complete a statement certifying that
lance crew. In certain circumstances, a chaplain killed in
you were permanently and totally disabled on the date you
the line of duty is also a public safety officer. The chaplain
retired. You must keep this statement for your tax records.
must have been responding to a fire, rescue, or police
For this purpose, you can use the Physician’s Statement in
emergency as a member or employee of a fire or police
the Instructions for Schedule R (Form 1040A or 1040).
department.
This program can pay survivors an emergency interim
Mandatory retirement age. This is the age set by your
benefit of up to $3,000 if it finds that the death of the public
employer at which you would have had to retire if you had
safety officer is one for which a final benefit will probably be
not become disabled. There is no mandatory retirement
paid. If there is no final payment, the recipient of the interim
age for most federal employees. However, there is a
benefit is liable for repayment. However, the BJA may not
mandatory retirement age for the following federal employ-
require all or part of the repayment if it will cause a hard-
ees.
ship. If that happens, that amount is tax free.
•
An air traffic controller appointed after May 15, 1972,
For more information on this program, you may
by the Department of Transportation or the Depart-
contact the BJA by calling 1-888-744-6513, or
ment of Defense generally must retire by the last day
202-307-0635 if you are in the metropolitan
of the month in which he or she reaches age 56.
Washington, D.C., calling area.
Page 18
Publication 721 (2011)
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