Living with a disability can bring about unique challenges and expenses. From medical costs and specialized equipment to home modifications and caregiving services, these additional financial burdens can quickly add up. Fortunately, the Internal Revenue Service (IRS) recognizes the need to alleviate some of these financial strains and offers various tax breaks and deductions for individuals with disabilities and their families.

In this blog post, we’ll explore the different tax benefits available for the disabled, helping you navigate the complexities of the tax code and ensure you’re taking advantage of all the deductions and credits you’re eligible for.

Medical Expense Deductions

One of the most significant tax breaks for individuals with disabilities is the ability to deduct qualifying medical expenses. These expenses can include:

• Costs of diagnosis, treatment, and preventive care
• Prescription drugs and medical supplies
• Specialized equipment (wheelchairs, hearing aids, prosthetics, etc.)
• Home modifications for medical care or accessibility
• Transportation costs for medical care

To claim these deductions, your total qualifying medical expenses must exceed 7.5% of your adjusted gross income (AGI). It’s essential to keep detailed records and receipts for all eligible expenses.

Impairment-Related Work Expenses

If you’re an employee with a physical or mental disability, you may be eligible to deduct impairment-related work expenses. These are costs that allow you to work despite your disability, such as:

• Attendant care services
• Transportation costs to and from work
• Specialized equipment and devices for work
• Service animal expenses

To claim these deductions, the expenses must be necessary for you to perform your job and not reimbursed by your employer or covered by insurance.

Tax Credits for the Disabled

In addition to deductions, there are several tax credits available for individuals with disabilities and their families. Tax credits directly reduce your tax liability, providing a more significant financial benefit than deductions.

Credit for the Elderly or the Disabled

This credit is available for individuals aged 65 or older or those who are permanently and totally disabled. The amount of the credit depends on your income level and filing status.

Child Tax Credit

If you have a child with a disability, you may be eligible for the Child Tax Credit. This credit can provide up to $2,000 per qualifying child, depending on your income and other factors.

Credit for Other Dependents

If you have a qualifying dependent with a disability, such as an adult child or elderly parent, you may be able to claim the Credit for Other Dependents. This credit is worth up to $500 per qualifying dependent.

Tax-Advantaged Savings Accounts

To help cover the costs associated with disabilities, the IRS offers several tax-advantaged savings accounts, including:

Health Savings Accounts (HSAs)

• Available for individuals with high-deductible health plans
• Contributions are tax-deductible
• Funds can be used tax-free for qualifying medical expenses

ABLE Accounts

• Tax-advantaged savings accounts for individuals with disabilities
• Contributions are not tax-deductible but earnings grow tax-free
• Withdrawals for qualifying disability expenses are tax-free

These accounts can help you save and pay for disability-related expenses while enjoying tax benefits and flexibility.

Claiming Tax Breaks for the Disabled

To claim tax breaks related to disabilities, it’s essential to keep meticulous records and documentation. This includes receipts, invoices, medical bills, and any other evidence supporting your qualifying expenses and deductions.

Additionally, you may need to provide proof of your disability or the disability of your dependent. This could include medical records, doctor’s certifications, or other documentation from qualified healthcare providers.

It’s always advisable to consult with a qualified tax professional to ensure you’re taking advantage of all available tax breaks and credits while remaining compliant with IRS regulations.

Maximize Your Tax Benefits with Get Five Tax Services

Navigating the complex world of tax breaks and deductions for individuals with disabilities can be overwhelming. At Get Five Tax Services, we understand the unique challenges and financial burdens faced by those living with disabilities and their families. Our team of experienced tax professionals can guide you through the intricate tax code, ensuring you take advantage of all available tax benefits while maintaining compliance with IRS regulations.

Don’t Leave Money on the Table – Contact Us Today!

Don’t miss out on valuable tax savings opportunities. By partnering with Get Five Tax Services, you can gain peace of mind knowing that your tax situation is in capable hands. Contact us today to schedule a consultation and let us help you maximize your tax benefits while minimizing your liabilities.