Do People with Disabilities or Handicaps Get Special Tax Deductions?

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If you suffer from a disability or a handicap, you should be aware that you may be qualified to certain money-saving tax breaks. Many individuals with such conditions are unaware of the special deductions for which they can qualify and, thus, end up missing out. If you have a handicap or a disability, take the time to research the money-saving opportunities that are available to you and take advantage of all of the deductions for which you are eligible. Here, we’ve supplied a few examples of deductions you may or may not qualify for, but there are many others that exist and that you should be aware of.

Handicapped and/or disabled individuals, for example, often have special needs when it comes to safely getting around in their homes. As a result, many such individuals will make home modifications each year. The good news is that necessary home modifications that are installed because of a disability or handicap are almost always tax deductible. Examples of deductible modifications might include installing ramps for wheelchair access, installing a stair lift, widening of areas of the home for easier access, or the lowering of certain objects, like light switches or cabinets, to make the more accessible. Do, however, keep documentation related to your purchase for best results.

Some tax credits are available simply because you are disabled. You don’t have to do anything to qualify for these types of credits except meet certain eligibility requirements. Generally, if you are at least sixty-five years of age at the end of the given tax year or under that age but retired with permanent disability or total disability, you are entitled to an often-sizable tax break. If you have questions about how to meet these eligibility requirements, talk to a tax professional.

Many disabled and/or handicapped individuals are subjected to greater medical related expenses than those without these issues. If you are facing medical charges that are more than 7.5% of your adjusted gross income, you can qualify for a tax break. Keep in mind as well that it’s not just your medical bills themselves that count toward this figure. If you are traveling long distances to seek treatment or care, paying for an in-home health care provider, paying insurance premiums, or buying medications, all of these expenses can and should be factored into your deduction.

Some disabled individuals will also qualify for an Earned Income Tax credit. This is one of the best credits to receive because, in many cases, it can result in you receiving a refund. Certain eligibility requirements must be met, however. The filer or his or her spouse must have been eligible for some of the work year, have received a certain level of income (dependent upon several different factors. A qualified tax preparer can help to determine if you are eligible for this tax credit but, generally, if you worked for par of the year before becoming disabled or handicapped, you are entitled to this tax break.

Have a tax question? Ask one of our tax professionals.