Tax Season Essentials: Benefits for Disabled Taxpayers

The Internal Revenue Service listed several tax credits and benefits available to taxpayers with disabilities as well as the parents of disabled children.

The Earned Income Tax Credit is available to disabled taxpayers as well as to the parents of a child with a disability. The EITC is a tax credit that not only reduces a taxpayer’s tax liability but may also result in a refund. Many working individuals with a disability, who have no qualifying children, but are older than 25 and younger than 65 do, in fact, qualify for EITC. Additionally, if the taxpayer’s child is disabled, the age limitation for the EITC is waived. The EITC has no effect on certain public benefits. Any refund you receive because of the EITC will not be considered income when determining whether you are eligible for benefit programs such as Supplemental Security Income and Medicaid.

The Credit for the Elderly or Disabled may be available to taxpayers who are age 65 or older, or who are younger than 65 and are retired on permanent and total disability. Taxpayers who pay someone to come to their home and care for their dependent or spouse may be entitled to claim the Child or Dependent Care Credit. There is no age limit if the taxpayer’s spouse or dependent is unable to care for him or herself.

Employees who have a physical or mental disability limiting their employment may be able to claim business expenses in connection with their workplace. The expenses must be necessary for the taxpayer to work. Taxpayers who are legally blind may be entitled to a higher standard deduction on their tax return.

Certain disability-related payments, Veterans Administration disability benefits and Supplemental Security Income may be excluded from a taxpayer’s gross income.

For more information on tax credits and benefits available to disabled taxpayers, see Publication 3966, "Living and Working with Disabilities," or Publication 907, "Tax Highlights for Persons with Disabilities," which are available on IRS.gov or by calling (800) TAX-FORM.

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