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Income Limits for the Credit for the Elderly or the Disabled THEN you generally cannot take the credit if: IF you are . . . The amount on Form 1040A, line 22, or Form 1040, line 38, is . . . Or you received . . . Single, head of household, or qualifying widow(er) with dependent child $17,500 or more $5,000 or more of nontaxable social security or other nontaxable pensions, annuities, or disability income Married filing jointly and only one spouse is eligible for the credit $20,000 or more $5,000 or more of nontaxable social security or other nontaxable pensions, annuities, or disability income Married filing jointly and both spouses are eligible for the credit $25,000 or more $7,500 or more of nontaxable social security or other nontaxable pensions, annuities, or disability income Married filing separately and you lived apart from your spouse for all of 2013 $12,500 or more $3,750 or more of nontaxable social security or other nontaxable pensions, annuities, or disability income Example 1. Sue retired on disability as a sales clerk. She now works as a full-time babysitter earn- ing minimum wage. Although she does different work, Sue babysits on ordinary terms for the mini- mum wage. She cannot take the credit because she is engaged in a substantial gainful activity. Example 2. Mary, the president of XYZ Corpora- tion, retired on disability because of her terminal ill- ness. On her doctor's advice, she works part time as a manager and is paid more than the minimum wage. Her employer sets her days and hours. Although Mary's illness is terminal and she works part time, the work is done at her employer's convenience. Mary is considered engaged in a substantial gainful activity and cannot take the credit. Example 3. John, who retired on disability, took a job with a former employer on a trial basis. The pur- pose of the job was to see if John could do the work. The trial period lasted for some time during which John was paid at a rate equal to the minimum wage. But because of John's disability, he was given only light duties of a nonproductive, make-work nature. Unless the activity is both substantial and gainful, John is not engaged in a substantial gainful activity. The activity was gainful because John was paid at a rate at or above the minimum wage. However, the activity was not substantial because the duties were of a nonproductive, make-work nature. More facts are needed to determine if John is able to engage in a substantial gainful activity. Disability Income Generally, disability income is the total amount you were paid under your employer's accident and health plan or pension plan that is included in your income as wages or payments instead of wages for the time you were absent from work because of permanent and total disability. However, any payment you re- ceived from a plan that does not provide for disabili- ty retirement is not disability income. In figuring the credit, disability income does not include any amount you received from your employ- er's pension plan after you have reached mandatory retirement age. For more details on disability income, see Pub. 525. Part II. Statement of Permanent and Total Disability If you checked box 2, 4, 5, 6, or 9 in Part I and you did not file a physician's statement for 1983 or an earlier year, or you filed or got a statement for tax years after 1983 and your physician signed on line A of the statement, you must have your physician com- plete a statement certifying that: You were permanently and totally disabled on the date you retired, or If you retired before 1977, you were permanent- ly and totally disabled on January 1, 1976, or Janu- ary 1, 1977. You do not have to file this statement with your tax return. But you must keep it for your records. You can use the physician's statement later in these instructions for this purpose. Your physician should show on the statement if the disability has lasted or can be expected to last continuously for at least a year, or if there is no reasonable probability that the disabled condition will ever improve. If you file a joint return and you checked box 5 in Part I, you and your spouse must each get a statement. If you filed a physician's statement for 1983 or an earlier year, or you filed or got a statement for tax years after 1983 and your physician signed on line B R-2