Tax Credits for the Disabled

There are a wide variety of tax credits available for those who are disabled. These credits and deductions can lower the amount of taxes that you owe, and can even lead to a refund. According to the IRS, you are considered disabled under two conditions:

You have a psychical or mental disability that limits your ability to work, such as blindness or deafness.

You have an impairment, either physical or mental, that hinders your capability to perform daily tasks, like walking, speaking, or breathing, and these impairments affect your ability to work.

The different tax credits available for anyone who is disabled include a credit for the elderly/disabled, a larger standard deduction, and a credit for medical expenses.

Credit for the Elderly/Disabled

If you are permanently disabled at the time you retire, there’s a possibility you may be able to receive a credit. There is an income limit for this credit, though. A single disabled taxpayer cannot have an adjusted gross income of over $17,500.

Larger Standard Deduction

Disabled individuals or  who are blind can receive a larger standard deduction when they file their return. The amount you are able to claim on a standard deduction depends on your filing status, whether you are eligible to be claimed as a dependent on another’s return, and if you are considered disabled and blind.

Medical Expenses

Itemizing your deductions can save you more money, especially if you claim your medical expenses as a personal itemized deduction. Health insurance premiums and any out of pocket expenses not reimbursed by a third party insurance may qualify to be deducted. The deduction is limited to an excess of 10% of your AGI (though anyone over 65 is still subject to 7.5% AGI through 2017).