2011 Instructions For Schedule R (Form 1040a Or 1040) (Draft) Page 2
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4Income Limits for the Credit for the Elderly or the Disabled
THEN you generally cannot take the credit if:
The amount on Form 1040A, line 22, or
IF you are . . .
Form 1040, line 38, is . . .
Or you received . . .
Single, head of household, or qualifying
$17,500 or more
$5,000 or more of nontaxable social
widow(er) with dependent child
security and other nontaxable pensions,
annuities, or disability income
Married filing jointly and only one
$20,000 or more
$5,000 or more of nontaxable social
spouse is eligible for the credit
security and other nontaxable pensions,
annuities, or disability income
Married filing jointly and both spouses
$25,000 or more
$7,500 or more of nontaxable social
are eligible for the credit
security and other nontaxable pensions,
annuities, or disability income
Married filing separately and you lived
$12,500 or more
$3,750 or more of nontaxable social
apart from your spouse for all of 2011
security and other nontaxable pensions,
annuities, or disability income
Example 1. Sue retired on disability as a sales clerk.
pension plan after you have reached mandatory retire-
She now works as a full-time babysitter earning mini-
ment age.
mum wage. Although she does different work, Sue ba-
For more details on disability income, see Pub. 525.
bysits on ordinary terms for the minimum wage. She
cannot take the credit because she is engaged in a sub-
stantial gainful activity.
Part II. Statement of
Example 2. Mary, the president of XYZ Corporation,
retired on disability because of her terminal illness. On
Permanent and Total Disability
her doctor’s advice, she works part time as a manager
and is paid more than the minimum wage. Her employer
If you checked box 2, 4, 5, 6, or 9 in Part I and you did
sets her days and hours. Although Mary’s illness is
not file a physician’s statement for 1983 or an earlier
terminal and she works part time, the work is done at
year, or you filed or got a statement for tax years after
her employer’s convenience. Mary is considered en-
1983 and your physician signed on line A of the state-
gaged in a substantial gainful activity and cannot take
ment, you must have your physician complete a state-
the credit.
ment certifying that:
Example 3. John, who retired on disability, took a job
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You were permanently and totally disabled on the
with a former employer on a trial basis. The purpose of
date you retired, or
the job was to see if John could do the work. The trial
•
If you retired before 1977, you were permanently
period lasted for some time during which John was paid
and totally disabled on January 1, 1976, or January 1,
at a rate equal to the minimum wage. But because of
1977.
John’s disability, he was given only light duties of a
nonproductive, make-work nature. Unless the activity is
You do not have to file this statement with your tax
both substantial and gainful, John is not engaged in a
return. But you must keep it for your records. You can
substantial gainful activity. The activity was gainful
use the physician’s statement, later in these instructions,
because John was paid at a rate at or above the mini-
for this purpose. Your physician should show on the
mum wage. However, the activity was not substantial
statement if the disability has lasted or can be expected
because the duties were of a nonproductive, make-work
to last continuously for at least a year, or if there is no
nature. More facts are needed to determine if John is
reasonable probability that the disabled condition will
able to engage in a substantial gainful activity.
ever improve. If you file a joint return and you checked
box 5 in Part I, you and your spouse must each get a
statement.
Disability Income
If you filed a physician’s statement for 1983 or an
Generally, disability income is the total amount you
earlier year, or you filed or got a statement for tax years
were paid under your employer’s accident and health
after 1983 and your physician signed on line B of the
plan or pension plan that is included in your income as
statement, you do not have to get another statement for
wages or payments instead of wages for the time you
2011. But you must check the box on line 2 in Part II to
were absent from work because of permanent and total
certify all three of the following.
disability. However, any payment you received from a
plan that does not provide for disability retirement is not
1. You filed or got a physician’s statement in an
disability income.
earlier year.
2. You were permanently and totally disabled during
In figuring the credit, disability income does not in-
clude any amount you received from your employer’s
2011.
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