People with disabilities can have a limited income or run into challenges attempting to work. To help, Uncle Sam has certain tax benefits in place. Here’s a look at some tax advantages for people with disabilities.
Disabled Americans Able to Get Tax Deductions
Tax Advantages for People with Disabilities
Elderly and Disabled Tax Credit: To qualify for this tax credit you have to be at least 65 years old or retired on a permanent or total disability with taxable disability income. Your adjusted gross income must be less than $17,500 if you’re single, head of household or qualifying widow or widower; $20,000 if you’re married filing jointly and one spouse is eligible, or $25,000 if both spouses are eligible; or $12,500 if you’re married filing separately. Claim this credit by attaching a Schedule R to your return.
Increased standard deduction: This deduction applies to taxpayers who are legally or partially blind. You may claim a higher standard deduction on your return. You’ll need to provide a statement from your doctor explaining your visual impairment, but it can be worth it.
Earned Income Tax Credit: The EITC is available to taxpayers with disabilities and to parents of a disabled child. It applies if have a disability but can work. If you don’t have a qualifying child and are between the ages of 25 and 65, chances are you may qualify. The IRS will waive the age limit if your child has a disability. The income you receive because of it doesn’t count when you’re being considered for Medicaid and Supplemental Security Income.
Impairment-related work expenses: If you’re an employee with work-related limitations due to a physical or mental disability, you may be able to claim certain business-related expenses you need to make in order for you to remain employed. You’ll have to prove that the expenses are in fact necessary for you to be employable when you claim the credit.
Tax Advantages for People with Disabilities
But whether are not you have a disability, the IRS doesn’t give mercy on those who don’t pay their back taxes. If you have an old tax debt, consider hiring a tax attorney or skilled tax professional to intercede. With the right amount of elbow grease, they can help resolve your tax debt quickly and help you avoid ‘financial’ disability along the way.