IRS Highlights for People with Disabilities: Know Benefits & Filing Requirements
Earned Income Tax Credit (EITC) What is it?: The EITC is a refundable tax credit for low- to moderate-income working individuals and families.
Credit for the Elderly or Disabled What is it?: This credit is available to individuals who are 65 or older, or retired on permanent and total disability, and have taxable disability income.
Medical Expense Deductions What is it?: You can deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI). This includes expenses for diagnosis, treatment, mitigation, or prevention of disease.
ABLE Accounts What is it?: Achieving a Better Life Experience (ABLE) accounts allow individuals with disabilities and their families to save for disability-related expenses without affecting eligibility for public benefits.
Impairment-Related Work Expenses (IRWE) What is it?: If you have a physical or mental disability that limits your ability to work, you can deduct the cost of expenses necessary for you to work, such as attendant care services or special equipment.
Filing Status Single, Married, Head of Household: Choose the filing status that best fits your situation. Filing as Head of Household, for example, might provide a larger standard deduction.
Required Documentation Proof of Disability: Keep records and documentation of your disability, such as a physician’s statement, which may be required for certain credits or deductions.
Filing Deadlines Annual Deadline: The standard tax filing deadline is April 15. Ensure you file your tax return on time to avoid penalties.
Tax Preparation Assistance Free Services: The IRS offers free tax preparation services through the Volunteer Income Tax Assistance (VITA) program
Professional Help: Consider seeking assistance from a tax professional experienced in handling tax issues related to disabilities.