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Tax Tips for Those With Disabilities

Tax Tips for Those With Disabilities

Special assistance is available for people with disabilities. If you do not complete your tax return due to a disability, you can get help from an IRS office or the Volunteer Income Tax Assistance or Tax Counselling for the Elderly Programs.

Tax Benefits for Disability

As a disabled person, you may be eligible for certain tax deductions, income exclusions, and credits. More wide-ranging information can be found in the IRS publications listed below.

If you

  • Are legally blind, see Publication 501, Exceptions, Standard Deduction, and Delivery Information to see if you qualify for a higher deduction?
  • You had a gross income. See publication 525, Taxable and Non-Taxable Information, to find out if you are eligible for a credit or a special deduction.
  • You possess a physical or mental disability that limits your employment, see Publication 529, Miscellaneous Deductions.
  • Are elderly or disabled, see Publication 524, Senior and Disabled Credit.
  • Pay for medical expenses, see publication 502, Medical, and Dental Expenses.
  • Income earned and earned, see Publication 596, Credit Loan.

The federal tax code consists of a number of provisions that can reduce the tax burden of persons with disabilities. Some disability payments and benefits are exempted from income tax, while deductions and credits can reduce taxes owing. However, these tax breaks are not always visible. You must know where to search for them.


Some disability refunds are subject to income tax, while others are not. Here are some common situations:

  • Disability benefits paid by your employer: If you receive a disabled income from an employer while you are unable to work, this money will generally be subject to taxes such as regular wages.
  • Disability insurance payment: If you are covered by disability insurance, the tax debt depends on the person who paid the insurance premiums. If your employer paid the benefits, they are subject to taxes. If you paid after-tax (money after tax), your benefits are not taxable.
  • Social Security Disability: This disability benefits may or may not be taxable, depending on the additional income you may have (and your spouse if you are married). However, in general, if the disability of the social security system is the only source of income, your benefits will not be taxed. Publication 915 of the Inland Revenue Service provides additional details on how to determine whether benefits are taxable.

Tax Disability Credit

If you are disabled and have taxable income for disability, you may be eligible for a federal tax credit for seniors and persons with disabilities. This credit is only available if the doctor has certified that your disability prevents you from working and that your condition should last more than one year or probably lead to death. The total amount of the credit depends on the taxable income you have and the amount you received in the event of a disability. See IRS publication 524 for more details.

Changes At Home

If you make improvements to your home to remedy a disability, you can claim these expenses as a medical expense deduction. This consists of things like adding a wheelchair ramp, chairlift or grab bars; Change equipment, electrical accessories or networks; or to increase doors or corridors. Improvements should only be made to accommodate the disability and not for aesthetic reasons. If improvements increase the value of your home, you can only deduct the portion of the cost that exceeds the appreciation. IRS Publication 502 provides additional details and examples.

Cost of Care

If you are already married, and you and your spouse have paid someone to ensure that your disability prevents you from taking care of yourself, then you may have the claim to be suited for the child and dependent care credit. The exact amount of the credit depends on how much you spend on care, earned income, and your spouse. In 2018, for example, the maximum credit amount varied from $600 to $1,050, depending on the case, or between $ 1,200 and $ 2,100 if you pay two or more dependents. See IRS 503 for more details.

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