Schedule IT-2440

Indiana Schedule IT-2440 is the official form used by Indiana residents to claim a disability retirement deduction on their state income tax return. This deduction is designed for individuals who retired on disability before the end of the tax year and are certified as permanently and totally disabled by a physician. The form allows eligible taxpayers to subtract a portion of their disability payments from their Indiana taxable income, up to a maximum of $5,200 per year (or $100 per week), subject to certain income limitations. To file Schedule IT-2440, you must complete the form in its entirety and enclose it with your Indiana Form IT-40 (full-year residents) or Form IT-40PNR (part-year or nonresidents). If both you and your spouse qualify, each must complete the relevant sections, and a physician must certify the disability status for each individual. Accurate completion of every line is essential to ensure your deduction is processed correctly and to avoid delays or denials.

How To File Indiana Schedule IT-2440

1. Obtain the Form: Download Schedule IT-2440 from the Indiana Department of Revenue website or receive it with your state tax booklet.
2. Complete All Required Fields: Fill out every section, including personal information, income details, and the physician’s certification.
3. Attach To Your Tax Return: Enclose the completed Schedule IT-2440 with your Form IT-40 or IT-40PNR when you file your Indiana state taxes.
4. Retain Copies: Keep a copy of the completed form and supporting documents for your records.

How to Complete Schedule IT-2440

Section 1: Taxpayer And Spouse Information

Field	Instructions
Your Social Security Number	Enter your Social Security Number in the space provided.
Spouse’s Social Security Number	If filing jointly, enter your spouse’s Social Security Number.
Your Name	Write your full first name, middle initial, and last name.
Spouse’s Name	If applicable, enter your spouse’s full first name, middle initial, and last name.
Your Daytime Telephone Number	Provide a phone number where you can be reached during the day.

Section 2: Employer Or Payer Information

Field	Instructions
Your Employer’s or Payer’s Name	Enter the name of the employer or payer from whom you received disability payments.
Spouse’s Employer’s or Payer’s Name	If your spouse is also claiming the deduction, enter their employer or payer’s name.
Date You Retired	Enter the date you retired on disability (MM/DD/YYYY).
Date Spouse Retired	If applicable, enter your spouse’s retirement date.

Section 3: Disability Payments And Deduction Calculation

Columns:

• Column A: Yourself
• Column B: Spouse

Line	Instructions
1A / 1B. Total Disability Payments Received During The Year	Enter the total amount of disability payments you (and your spouse, if applicable) received during the tax year.
2. Add Lines 1A And 1B	Add the amounts from lines 1A and 1B. Enter the total here.
3A / 3B. Excess Of Disability Payments Over $100 Per Week	Calculate the amount by which your (and your spouse’s) disability payments exceed $100 per week. Use the worksheet and Table A in the instructions to determine this. Enter the result for yourself in 3A and for your spouse in 3B.
4. Excess Of Federal Adjusted Gross Income Over $15,000 ($7,500 If Married Filing Separately)	Subtract $15,000 (or $7,500 if married filing separately) from your federal adjusted gross income. Enter the excess amount here. If your income does not exceed the threshold, enter zero.
5. Add Lines 3A, 3B, And 4	Add the amounts from lines 3A, 3B, and 4. Enter the total here.
6. Line 2 Minus Line 5 (If Less Than Zero, Enter Zero)	Subtract the amount on line 5 from the amount on line 2. If the result is less than zero, enter zero. This is your disability retirement deduction. Report this amount on Form IT-40, Schedule 2, under line 11, or on Form IT-40PNR, Schedule C, under line 11.

Section 4: Physician’s Statement Of Permanent And Total Disability

Field	Instructions
Name Of Disabled Individual	Enter the full name of the individual who is permanently and totally disabled.
Date Individual Retired	Enter the date the individual retired on disability.
Physician’s Name	The certifying physician must print their full name.
Physician’s Address	The physician must provide their complete address, including street, city, state, and ZIP code.
Physician’s Signature	The physician must sign to certify the individual’s permanent and total disability status.
Date	The physician must date the certification (MM/DD/YYYY).

Key Takeaways

• Schedule IT-2440 is essential for Indiana taxpayers seeking a disability retirement deduction.
• Every line must be completed accurately to ensure eligibility and avoid processing delays.
• A physician’s certification is required to validate permanent and total disability status.