Special Rules for Disabled People Under Age 65

If you are permanently and totally disabled and are under age 65, special rules apply to determine your credit. Your initial amount may not exceed your taxable disability income for the tax year. Thus, your initial amount is the lesser of your applicable initial amount based on your filing status, as described above, or your disability income for the year.

You are considered to be permanently and totally disabled if you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to last for not less than 12 months, or to result in death.

You must be able to furnish proof of your disability to the IRS. Generally this means you must obtain a physician's statement certifying the disability, and keep it in your permanent records.

Use the statement on page R-4 of the instructions for Schedule R. Prior to 1999, you were required to send this statement to the IRS in the first year of your disability, but this is no longer necessary. However, you must be prepared to show the statement to the IRS if you ever get audited.