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Level 1
June 9, 2021
Question

Permanent Disability Question

  • June 9, 2021
  • 1 reply
  • 4 views

Hello,

 

Is dementia considered a permanent disability? She was 59 when she was made to retire, but turned 60 last year. Would I put the whole amount as a situation to lower the tax bill? Also, I see two 1099-R forms. One with distribution code 2 and the other for distribution code 7. I don't see the differences turbo tax. Please advise.


Thank you 

1 reply

Level 15
June 9, 2021

person is permanently and totally disabled if both of the following apply. He or she can't engage in any substantial gainful activity because of a physical or mental condition. A physician determines that the disability has lasted or can be expected to last continuously for at least a year or can lead to death.

 

Critter-3
Level 15
June 9, 2021

Codes 2 & 7 are treated alike on the income tax return.