For tax year 2011, the maximum retirement income exclusion is $35,000 for taxpayers who are:

• 62 years of age or older, or
• permanently disabled to such an extent that they are unable to perform any type of gainful employment.

The exclusion is available for the taxpayer and his/her spouse; however, each must qualify on a separate basis.  If both spouses qualify, the maximum allowable exclusion on a joint return is $70,000.  Income from property that is jointly owned should be allocated to each taxpayer at 50% of the total value.  Up to $4,000 of the maximum allowable exclusion may be earned incomes.

We automatically figure any retirement income exclusion for those taxpayers who are 62 years of age or older. 

For those taxpayers who are permanently disabled, you must enter your type of disability and your date of disability.

For additional information, please click here.