Elderly or the Disabled Credit

What is the definition of permanently and totally disabled?

You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition.

Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or in work generally done for pay. Working a full time job for at least the minimum wage means the person can engage in substantial gainful activity and cannot claim the credit.

A physician must certify that you were totally and permanently disabled on the day you retired. You must keep this statement with your other tax records.

Taxable disability income

Taxable disability income must meet the following two requirements:

1. The income must be paid under your employer's accident, health plan or pension plan.
2. The income must be included as wages for the time you are absent from work because of permanent and total disability.

For purposes of the elderly and disabled tax credit, disability income does not include amounts you receive after you reach mandatory retirement age.

What is mandatory retirement age?

Mandatory retirement age is the age set by your employer at which you would have had to retire, if you had not become disabled.