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Michele7
Returning Member

IT 2440 - Indiana Disability Retirement Deduction

How do I calculate what is included as disability payments? 

 

I have two disability payments; one from my state pension and one from third party sick pay.  Turbo Tax is only pulling over the information from the state pension payments to the IT2440.  Should it also include the third party sick payment.  Main difference is pension is 1099-R and third party sick is a W-2.

 

From the form instructions:

Line 1 - Enter the amount received during the taxable year
through an accident and health plan for personal injuries or
sickness.

 

I cannot do this; the program seems to pull the information from the 1099-R and I cannot change it in the worksheet.

 

Is this correct? Or is there an error with TT?

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2 Replies
MaryK4
Expert Alumni

IT 2440 - Indiana Disability Retirement Deduction

TurboTax is only using the 1099-R amount because the deduction only applies to Retirement Disability and not the Third-Party sick pay.  Unfortunately, the disability insurance cannot be excluded.

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Michele7
Returning Member

IT 2440 - Indiana Disability Retirement Deduction

thank you

i was confused by the definition in the state's instructions for the form

 

 

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