If you (and/or your spouse, if filing jointly) were born on or before Dec. 31, 1952, you may take a retirement credit of up to $450. Complete the Retirement Credit Worksheet, below, to calculate the credit.
Note: Because the maximum amount of this credit is $450 per individual, you (and/or your spouse) may qualify for a larger credit by taking the Social Security Benefits Credit (code AH) or the Military Retirement Credit (code (AJ).
|Retirement Credit Worksheet|
|1. If only you or only your spouse is taking this credit, enter 450. If both you and your spouse are taking this credit, enter 900.||1.|
|2. Enter the amount from TC-40, line 6 (Total income)||2.|
|3. Enter municipal bond interest from TC-40, Schedule A, Part 1, code 57||3.|
|4. Line 2 minus line 3||4.|
|5. Enter tax exempt interest from federal form1040 or 1040-SR, line 2a||5.|
|6. Modified Adjusted Gross Income, add lines 4 and 5||6.|
|8. Line 6 minus line 7 (not less than zero)||8.|
|9. Multiply line 8 by 0.025||9.|
|10. Retirement Credit
Subtract line 9 from line 1 (not less than zero).
If you (and/or your spouse) claim this credit, enter the total amount on TC-40A, Part 3, using code 18. Also enter your (and/or your spouse’s) birthdate(s).
Note: You may not carry forward or back any retirement credit that is more than your tax liability.