There are several tax credits and benefits available to qualifying taxpayers with disabilities as well as to
the parents of disabled children. Listed below are several tax credits and other benefits available if you
or someone else listed on your federal tax return is disabled.
The Earned Income Tax Credit
The EITC is available to disabled taxpayers as well as to the parents of a child with a disability. The EITC is
a tax credit that not only reduces a taxpayer’s tax liability but may also result in a refund. Many working
individuals with a disability, who have no qualifying children, but are older than 25 and younger than 65
do, in fact, qualify for EITC. Additionally, if the taxpayer’s child is disabled, the age limitation for the EITC
is waived. The EITC has no effect on certain public benefits. Any refund you receive because of the EITC
will not be considered income when determining whether you are eligible for benefit programs such as
Supplemental Security Income and Medicaid.
The Credit for the Elderly or Disabled
This credit may be available to taxpayers who are age 65 or older, or who are younger than 65 and are
retired on permanent and total disability.
Child or Dependent Care Credit
Taxpayers who pay someone to come to their home and care for their dependent or spouse may be
entitled to claim this credit. There is no age limit if the taxpayer’s spouse or dependent is unable to care
for themselves.
Impairment-Related Work Expenses
Employees who have a physical or mental disability limiting their employment may be able to claim
business expenses in connection with their workplace. The expenses must be necessary for the taxpayer
to work.
Impact on the Standard Deduction
Taxpayers who are legally blind may be entitled to a higher standard deduction on their tax return.
Gross Income
Certain disability-related payments, Veterans Administration disability benefits, and Supplemental
Security Income may be excluded from a taxpayer’s gross income.
As always if you have any questions about these deductions or benefits we are able to answer them for
you. Contact us today with your tax related questions!