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Income Limits for the Credit for the Elderly

or the Disabled

THEN you generally can't 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 security

widow(er)

or other nontaxable pensions, annuities, or

disability income

Married filing jointly and only one spouse is

$20,000 or more

$5,000 or more of nontaxable social security

eligible for the credit

or other nontaxable pensions, annuities, or

disability income

Married filing jointly and both spouses are

$25,000 or more

$7,500 or more of nontaxable social security

eligible for the credit

or other nontaxable pensions, annuities, or

disability income

Married filing separately and you lived apart

$12,500 or more

$3,750 or more of nontaxable social security

from your spouse for all of 2017

or other nontaxable pensions, annuities, or

disability income

doesn't provide for disability retirement isn't disability in-

come.

Example 1. Sue retired on disability as a sales clerk. She

now works as a full-time babysitter earning minimum

In figuring the credit, disability income doesn't include

wage. Although she does different work, Sue babysits on

any amount you received from your employer's pension

ordinary terms for the minimum wage. She can't take the

plan after you have reached mandatory retirement age.

credit because she is engaged in a substantial gainful ac-

For more details on disability income, see Pub. 525.

tivity.

Example 2. Mary, the president of XYZ Corporation, re-

tired on disability because of her terminal illness. On her

Part II. Statement of Permanent

doctor's advice, she works part-time as a manager and is

and Total Disability

paid more than the minimum wage. Her employer sets

her days and hours. Although Mary's illness is terminal

and she works part-time, the work is done at her employ-

If you checked box 2, 4, 5, 6, or 9 in Part I and you didn't

er's convenience. Mary is considered engaged in a sub-

file a physician's statement for 1983 or an earlier year, or

stantial gainful activity and can't take the credit.

you filed or got a statement for tax years after 1983 and

your physician signed on line A of the statement, you

Example 3. John, who retired on disability, took a job

must have your physician complete a statement certifying

with a former employer on a trial basis. The purpose of

that:

the job was to see if John could do the work. The trial pe-

You were permanently and totally disabled on the

riod lasted for some time during which John was paid at a

date you retired, or

rate equal to the minimum wage. But because of John's

If you retired before 1977, you were permanently

disability, he was given only light duties of a nonproduc-

and totally disabled on January 1, 1976, or January 1,

tive, make-work nature. Unless the activity is both sub-

1977.

stantial and gainful, John isn't engaged in a substantial

gainful activity. The activity was gainful because John

You don't have to file this statement with your tax re-

was paid at a rate at or above the minimum wage. How-

turn. But you must keep it for your records. You can use

ever, the activity wasn't substantial because the duties

the physician's statement later in these instructions for

were of a nonproductive, make-work nature. More facts

this purpose. Your physician should show on the state-

are needed to determine if John is able to engage in a

ment if the disability has lasted or can be expected to last

substantial gainful activity.

continuously for at least a year, or if there is no reasona-

Disability Income

ble probability that the disabled condition will ever im-

prove. If you file a joint return and you checked box 5 in

Generally, disability income is the total amount you were

Part I, you and your spouse must each get a statement.

paid under your employer's accident and health plan or

If you filed a physician's statement for 1983 or an ear-

pension plan that is included in your income as wages or

lier year, or you filed or got a statement for tax years af-

payments instead of wages for the time you were absent

ter 1983 and your physician signed on line B of the state-

from work because of permanent and total disability.

ment, you don't have to get another statement for 2017.

However, any payment you received from a plan that

But you must check the box on line 2 in Part II to certify

all three of the following.

R-2

Instructions For Schedule R (Form 1040a Or 1040) - Credit For The Elderly Or The Disabled - 2017 Page 2

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