Schedule R may be filed by tax payers who fall into one of two categories. First, any tax payer who was 65 years of age or older by the end of the tax year may file. Tax payers under 65 years of age may file Schedule R if they were permanently and totally disabled on the date of retirement from work. For the 2009 tax year, disabled tax payers may file if they retired before 1977 and were permanently and totally disabled on January 1st, 1976 or January 1st, 1977. These disabled tax payers must also have received taxable disability income for the tax year. Furthermore, on January 1st of the tax year, disabled tax payers must not have reached mandatory retirement age or the age when the employer’s retirement program required the tax payer to retire. Definitions for permanently and totally disabled can be found on page R-2 of the Instructions to Schedule R under the heading “What is Permanent and Total Disability?”
Nonresident aliens during the tax year may be able to file Schedule R if the tax payer is married and filing jointly. There are income limits associated with the tax credit. For example, if the amount on form 1040 line 38 is $17,500 or greater, a single tax payer can not claim the credit. This amount jumps to $25,000 for or greater for married couple filing jointly if both spouses qualify for the credit because of age or disability. Since the credit is based on filing status, age, and income, consulting the Schedule R Instructions will make clear whether a tax payer is eligible for the credit.
