Under some circumstances, there is a tax credit available to individuals who are: (1) age 65 or older; or (2) under age 65 and retired on permanent and total disability. The credit is equal to 15 percent of the taxpayer's "Section 22" amount of income for the year: $5,000 for single taxpayers or married taxpayers filing jointly when only one spouse qualifies for the credit (i.e., $750 credit), and $7,500 for married taxpayers when both qualify for the credit (i.e., $1,125 credit).
Nontaxable Social Adjusted Security, pension, or or gross disability benefits income Single $ 5,000 $ 17,500 Married filing 5,000 20,000 jointly with one spouse qualified * Married filing 7,500 25,000 jointly with both spouses qualified * * A qualified individual is one who is either age 65 or older, or under age 65 and retired on permanent and total disability. In order to qualify for Social Security disability benefits an applicant must meet all nine of the following tests:
Following an ore tenus proceeding, the trial court entered a judgment that Nurse Meinhardt had suffered permanent and total disability on August 23, 2004.
However, relying on state law, it declined to award permanent and total disability benefits to the employee because she had failed to "mitigate her damages." The trial court found that the employee had refused psychological treatment as of November 2002, and that she had refused to attend any further psychiatric appointments after March of 2003.
In 1988, an Alabama trial court determined that Crump's injuries had resulted in a permanent total disability, as defined under the Alabama Workers' Compensation Act, and awarded her permanent and total disability
benefits for her projected lifetime.
The agreement said that if a shareholder or employee left DML for any reason other than death, retirement or permanent and total disability
and performed services for DML clients within three years after leaving the firm, the shareholder or employee must pay damages equal to 125% of the amount billed to the former DML clients for the fiscal year immediately before the year of termination or the year the clients were taken, whichever was later.
A tax credit of up to $1,125 is available for people age 65 and older and also for people retired on permanent and total disability
. Permanent and total disability
means that you cannot work in a substantial gainful activity because of a physical or mental condition.