The tax professionals at the Thorgood Law Firm can help any taxpayer pinpoint all of the tax benefits that are applicable to his or her situation or status. The following are some of the tax benefits that may assist disabled taxpayers.
- Credit for the Elderly or Disabled: This credit is generally available to certain taxpayers who are sixty-five (65) and older as well as to certain disabled taxpayers who are younger than sixty-five (65) but are on permanent and total disability.
- Child or Dependent Care Credit: Taxpayers who pay someone to care for their dependent or spouse so they can work or look for work may qualify to claim this credit. If the taxpayer’s spouse or dependent is unable to independently care for themselves, there is no age limits to taking this deduction.
- Earned Income Tax Credit (EITC): This credit is available to disabled taxpayers as well as to the parents of children with disabilities. Usually when a taxpayer retires on disability, any taxable benefits received under an employer’s disability retirement plan are considered earned income until minimum retirement age is reached. If the EITC more than zeroes out income, a refund may result. Many disabled working individuals who have no qualifying children, but are older than twenty-five (25) and younger than sixty-five (65), qualify for the EITC. As with the Child and Dependent Care Credit discussed above, if the taxpayer’s child is disabled, the age limitation for the EITC is waived.
- Gross Income: Some disability-related payments like Veterans Administration (VA) disability benefits and Supplemental Security Income (SSI) are excluded from gross income.
- Impairment-Related Work Expenses: Disabled employees may be able to claim business expenses for equipment necessary to enable the individual to work while disabled.
- Medical Expenses: Disabled taxpayers who itemize deductions using Form 1040, Schedule A, may be able to deduct medical expenses.
- Standard Deduction: Taxpayers who are legally blind are typically entitled to a higher standard deduction.
If you or a loved one are disabled and have a question about related tax benefits, whether it is a credit or deduction, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation, call 212-490-0704.
