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i1040x
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Department of the Treasury
Internal Revenue Service

2023 Instructions for Schedule R

Use Schedule R (Form 1040) to figure the credit for the elderly or the disa-
Credit for the bled.
Future developments. For the latest information about developments related
Elderly or the to Schedule R (Form 1040) and its instructions, such as legislation enacted af-
ter they were published, go to IRS.gov/ScheduleR.
Disabled Additional information. See Pub. 524 for more details.

Nonresident Aliens
Who Can Take the Credit If you were a nonresident alien at any time during 2023,
The credit is based on your filing status, age, and income. you may be able to take the credit only if your filing sta-
If you are married and filing a joint return, it is also based tus is married filing jointly.
on your spouse's age and income. You may be able to
Income Limits
take this credit if either of the following applies.
See Income Limits for the Credit for the Elderly or the
1. You were age 65 or older at the end of 2023.
Disabled, later.
2. You were under age 65 at the end of 2023 and you
meet all of the following. Want the IRS To Figure Your Credit?
a. You were permanently and totally disabled on the If you can take the credit and you want us to figure it for
date you retired. If you retired before 1977, you must you, check the box in Part I of Schedule R (Form 1040)
have been permanently and totally disabled on January 1, for your filing status and age. Fill in Part II and lines 11
1976, or January 1, 1977. and 13 of Part III if they apply to you. Then, enter “CFE”
b. You received taxable disability income for 2023. on the dotted line next to Schedule 3 (Form 1040),
line 6d. Be sure to attach both Schedule 3 and Schedule R
c. On January 1, 2023, you hadn't reached mandatory
to your return.
retirement age (the age when your employer's retirement
program would have required you to retire). Disability Income
For the definition of permanent and total disability, see Generally, disability income is the total amount you were
What Is Permanent and Total Disability, later. Also, see paid under your employer's accident and health plan or
the instructions for Part II. Statement of Permanent and pension plan that is included in your income as wages or
Total Disability, later. payments instead of wages for the time you were absent
from work because of permanent and total disability.
Age 65 However, any payment you received from a plan that
You are considered age 65 on the day before your 65th doesn't provide for disability retirement isn't disability in-
birthday. As a result, if you were born on January 1, come.
1959, you are considered to be age 65 at the end of 2023.
In figuring the credit, disability income doesn't include
Death of taxpayer. If you are preparing a return for any amount you received from your employer's pension
someone who died in 2023, consider the taxpayer to be plan after you have reached mandatory retirement age.
age 65 at the end of 2023 if they were age 65 or older on
the day before their death. For example, if the taxpayer For more details on disability income, see Pub. 525.
was born on February 14, 1958, and died on February 13,
2023, the taxpayer is considered age 65 at the time of
death. However, if the taxpayer died on February 12,
2023, the taxpayer isn’t considered age 65 at the time of
death.

Married Persons Filing Separate
Returns
If your filing status is married filing separately and you
lived with your spouse at any time during 2023, you can't
take the credit.

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Jun 20, 2023 Cat. No. 11357O

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Income Limits for the Credit for the Elderly Example 2. Blake, the president of XYZ Corporation,
or the Disabled retired on disability because of a terminal illness. On the
doctor's advice, Blake works part-time as a manager and
THEN you generally can't take the credit is paid more than the minimum wage. The employer sets
if: the days and hours for Blake. Although Blake's illness is
The amount on terminal, and the work is performed part-time, the work
Form 1040 or is done at the employer's convenience. Blake is consid-
1040-SR, line 11, ered engaged in a substantial gainful activity and can't
IF you are . . . is . . . Or you received . . . take the credit.
Example 3. Cameron, who retired on disability, took a
single, head of $17,500 or more $5,000 or more of
job with a former employer on a trial basis. The purpose
household, or nontaxable social
qualifying surviving security or other of the job was to see if Cameron could do the work. The
spouse nontaxable pensions, trial period lasted for some time during which Cameron
annuities, or was paid at a rate equal to the minimum wage. But be-
disability income. cause of Cameron's disability, only light duties of a non-
productive, make-work nature was given. Unless the ac-
married filing jointly $20,000 or more $5,000 or more of tivity is both substantial and gainful, Cameron isn't
and only one spouse nontaxable social engaged in a substantial gainful activity. The activity was
is eligible for the security or other
gainful because Cameron was paid at a rate at or above
credit nontaxable pensions,
annuities, or the minimum wage. However, the activity wasn't sub-
disability income. stantial because the duties were of a nonproductive,
make-work nature. More facts are needed to determine if
married filing jointly $25,000 or more $7,500 or more of Cameron is able to engage in a substantial gainful activi-
and both spouses are nontaxable social ty.
eligible for the credit security or other
nontaxable pensions,
annuities, or
disability income. Part II. Statement of Permanent
married filing $12,500 or more $3,750 or more of and Total Disability
separately and you nontaxable social
lived apart from your security or other If you checked box 2, 4, 5, 6, or 9 in Part I and you didn't
spouse for all of 2023 nontaxable pensions, file a physician's statement for 1983 or an earlier year, or
annuities, or you filed or got a statement for tax years after 1983 and
disability income. your physician signed on line A of the statement, you
must have your physician complete a statement certifying
that:
What Is Permanent and Total • You were permanently and totally disabled on the
date you retired; or
Disability? If you retired before 1977, you were permanently
•
A person is permanently and totally disabled if both 1 and totally disabled on January 1, 1976, or January 1,
and 2 below apply. 1977.
1. They can't engage in any substantial gainful activi-
You don't have to file this statement with your tax re-
ty because of a physical or mental condition.
turn. But you must keep it for your records. You can use
2. A qualified physician determines that the condition the physician's statement later in these instructions for
has lasted or can be expected to last continuously for at this purpose. Your physician should show on the state-
least a year or can be expected to result in death. ment if the disability has lasted or can be expected to last
Examples 1 and 2 show situations in which the indi- continuously for at least a year, or if there is no reasona-
viduals are considered engaged in a substantial gainful ble probability that the disabled condition will ever im-
activity. Example 3 shows a person who might not be prove. If you file a joint return and you checked box 5 in
considered engaged in a substantial gainful activity. In Part I, you and your spouse must each get a statement.
each example, the person was under age 65 at the end of If you filed a physician's statement for 1983 or an ear-
the year. lier year, or you filed or got a statement for tax years af-
Example 1. Alex retired on disability as a sales clerk, ter 1983 and your physician signed on line B of the state-
and now works as a full-time babysitter earning mini- ment, you don't have to get another statement for 2023.
mum wage. Although different work is performed, Alex But you must check the box on line 2 in Part II to certify
babysits on ordinary terms for the minimum wage. Alex all three of the following.
can’t take the credit because Alex is engaged in a sub- 1. You filed or got a physician's statement in an earli-
stantial gainful activity. er year.

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Credit Limit Worksheet—Line 21 Keep for Your Records
Use this worksheet to figure your credit limit.

1. Enter the amount from Form 1040 or 1040-SR, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount from Schedule 3 (Form 1040), lines 1, 2, and 6l . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Subtract line 2 from line 1. Enter this amount on Schedule R (Form 1040), line 21. But if
zero or less, STOP; you can't take this credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

2. You were permanently and totally disabled during tered $3,000 on line 12 (the smaller of line 10 or line 11).
2023. The largest amount that can be used to figure the credit is
3. You were unable to engage in any substantial gain- $3,000.
ful activity during 2023 because of your physical or men-
tal condition. Lines 13a Through 18
The amount on which you figure your credit can be re-
If you checked box 4, 5, or 6 in Part I, enter in the duced if you received certain types of nontaxable pen-
space above the box on line 2 in Part II the first name(s) sions, annuities, or disability income. The amount can al-
of the spouse(s) for whom the box is checked. so be reduced if your adjusted gross income is over a cer-
If the Department of Veterans Affairs (VA) certifies tain amount, depending on which box you checked in
that you are permanently and totally disabled, you can Part I.
use VA Form 21-0172 instead of the physician's state- Line 13a. Enter any social security benefits (before de-
ment. VA Form 21-0172 must be signed by a person au- duction of Medicare premiums) you (and your spouse if
thorized by the VA to do so. You can get this form from filing jointly) received for 2023 that aren't taxable. Also,
your local VA regional office. enter any tier 1 railroad retirement benefits treated as so-
cial security that aren't taxable.
If any of your social security or equivalent railroad re-
Part III. Figure Your Credit tirement benefits are taxable, the amount to enter on this
line is generally the difference between the amounts en-
Line 11 tered on Form 1040 or 1040-SR, line 6a and line 6b.
If you checked box 2, 4, 5, 6, or 9 in Part I, use the fol- If your social security or equivalent railroad re
lowing table to complete line 11. ! tirement benefits are reduced because of workers'
CAUTION compensation benefits, treat the workers' com
IF you checked . . . THEN enter on line 11 . . . pensation benefits as social security benefits when com
box 6 the total of $5,000 plus the disability pleting Schedule R (Form 1040), line 13a.
income you reported on your tax return
for the spouse who was under age 65. Line 13b. Enter the total of the following types of in-
come that you (and your spouse if filing jointly) received
box 2, 4, or 9 the total amount of disability income for 2023.
you reported on your tax return. Veterans' pensions (but not military disability pen-
•
box 5 the total amount of disability income sions).
you reported on your tax return for • Any other pension, annuity, or disability benefit that
both you and your spouse. is excluded from income under any provision of federal
law other than the Internal Revenue Code. Don't include
amounts that are treated as a return of your cost of a pen-
sion or annuity.
Example 1. You are 63 and retired on permanent and to-
Don't include on line 13b any pension, annuity, or sim-
tal disability in 2023. You received $4,000 of taxable dis-
ilar allowance for personal injuries or sickness resulting
ability income and will report the income on Form 1040,
from active service in the armed forces of any country, or
line 1a. You are filing jointly with your spouse, who was
in the National Oceanic and Atmospheric Administration
age 67 in 2023, and will check box 6 in Part I. On
or the Public Health Service. Also, don't include a disa-
line 11, you will enter $9,000 ($5,000 plus the $4,000 of
bility annuity payable under section 808 of the Foreign
disability income you will report on Form 1040, line 1a).
Service Act of 1980.
Example 2. You checked box 2 in Part I and entered
$5,000 on line 10. You received $3,000 of taxable disa-
bility income, which is entered on line 11. You also en-

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Instructions for Physician's Statement
Taxpayer Physician
If you retired after 1976, enter the date you retired in A person is permanently and totally disabled if both
the space provided on the statement below. of the following apply.
1. They can't engage in any substantial gainful
activity because of a physical or mental condition.
2. 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.

Physician's Statement Keep for Your Records

I certify that
Name of disabled person
was permanently and totally disabled on January 1, 1976, or January 1, 1977, or was permanently and totally
disabled on the date they retired. If retired after 1976, enter the date retired:
Physician: Sign your name on either line A or B below.

A The disability has lasted or can be expected to
last continuously for at least a year . . . . . . . . . . . . .
Physician's signature Date
B There is no reasonable probability that the
disabled condition will ever improve . . . . . . . . . . .
Physician's signature Date
Physician's name Physician's address

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