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Income Limits for the Credit for the Elderly or the Disabled THEN you generally can't take the credit if: IF you are . . . The amount on Form 1040 or 1040-SR, line 11 is . . . Or you received . . . Single, head of household, or qualifying widow(er) $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 2021 $12,500 or more $3,750 or more of nontaxable social security or other nontaxable pensions, annuities, or disability income What Is Permanent and Total Disability? A person is permanently and totally disabled if both 1 and 2 below apply. 1. He or she can't engage in any substantial gainful activity because of a physical or mental condition. 2. A qualified physician determines that the condition has lasted or can be expected to last continuously for at least a year or can be expected to result in death. Examples 1 and 2 show situations in which the indi- viduals are considered engaged in a substantial gainful activity. Example 3 shows a person who might not be considered engaged in a substantial gainful activity. In each example, the person was under age 65 at the end of the year. Example 1. Sue retired on disability as a sales clerk. She now works as a full-time babysitter earning minimum wage. Although she does different work, Sue babysits on ordinary terms for the minimum wage. She can't take the credit because she is engaged in a substantial gainful ac- tivity. Example 2. Mary, the president of XYZ Corporation, re- tired on disability because of her terminal illness. 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 employ- er's convenience. Mary is considered engaged in a sub- stantial gainful activity and can't take the credit. Example 3. John, who retired on disability, took a job with a former employer on a trial basis. The purpose of the job was to see if John could do the work. The trial pe- riod 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 nonproduc- tive, make-work nature. Unless the activity is both sub- stantial and gainful, John isn't engaged in a substantial gainful activity. The activity was gainful because John was paid at a rate at or above the minimum wage. How- ever, the activity wasn't 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. Part II. Statement of Permanent and Total Disability If you checked box 2, 4, 5, 6, or 9 in Part I and you didn't 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 complete a statement certifying that:• You were permanently and totally disabled on the date you retired, or • If you retired before 1977, you were permanently and totally disabled on January 1, 1976, or January 1, 1977. You don't have to file this statement with your tax re- turn. 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 state- ment if the disability has lasted or can be expected to last continuously for at least a year, or if there is no reasona- ble probability that the disabled condition will ever im- prove. 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 ear- lier year, or you filed or got a statement for tax years af- ter 1983 and your physician signed on line B of the state- ment, you don't have to get another statement for 2021. But you must check the box on line 2 in Part II to certify all three of the following. 1. You filed or got a physician's statement in an earli- er year. 2. You were permanently and totally disabled during 2021. R-2