Many taxpayers who have disabilities can qualify for tax credits, benefits and deductions. Even the parents of children with disabilities can qualify for some tax breaks.
- If you are considered legally blind and file with Standard Deductions, you may be eligible to take larger deductions.
- If you have a disability, are employed and have Related Work Expenses, you may qualify to claim any business expenses related to your workplace. These expenses must be proven to be necessary in order for you to perform your job effectively.
- A credit for the elderly and disabled can be claimed for taxpayers 65 years of age or younger; however, they must be retired and on permanent and total disability.
- You can deduct medical expenses if you itemize your deductions by using the IRS 1040 Form, Schedule A.
- You may be able to claim the Earned Income Tax Credit if you have disabilities or are the parent of a disabled child. If you retired while you were on disability, your disability payments are considered earned income and are taxable until you are 65 years old. The EITC is a credit, so it will reduce your liability and potentially give you a refund. If you are between the ages of 25 and 65 and are disabled with no children, you may still be eligible for the EITC. Age restrictions are waived if you have a disabled child and claim the EITC. If you are eligible for Supplemental Social Security Income or Medicare, you will not be considered as having income if you choose to take the EITC.
- You can claim the Child or Dependent Care Tax Credit if you pay someone to come to your home to care for your disabled child or spouse.
If you think you or someone in your household may qualify for these credits, speak to a tax professional about all of your options for getting your maximum amount of deductions and credits.
