The Internal Revenue Service has allowed for disabled taxpayers to receive several breaks, deductions, and credits on their income tax returns. In some cases, these credits are available simply because taxpayers meet certain standards regarding age and disability. Some other tax breaks must exceed a certain amount or be used for a specific purpose in order to be considered qualified expenses.

Exemptions for Disabled Taxpayers

The IRS exempts some sources of income for disabled taxpayers from federal income tax altogether. These include select disability payments from an employer, Supplemental Security Income, and disability payments from the U.S. Department of Veterans Affairs. Those who receive income from these sources may not have to pay federal income tax at all.

Tax Deductions for the Disabled

In addition to the above income exceptions, the IRS has provided a few tax deductions that are available to the disabled. Those who are legally blind are entitled to an increased standard deduction. This is in addition to an increased standard deduction for those who are over age 65. As an example, a taxpayer who is 70 years old, legally blind, and single would be eligible for the nominal single standard deduction, an additional standard deduction for age, and the additional standard deduction for blindness.

Disabled taxpayers may also qualify to write off the cost of accessibility supplies or adjustments at work. The catch is that these must be essential to performing his or her job and he or she must have paid for these costs out of pocket. As an example, a specially-constructed keyboard or joystick to accommodate a physical disability would be eligible for this deduction.

IRS Tax Credits for Handicapped Persons

There are also IRS tax credits available to the handicapped. The Credit for the Elderly or the Disabled is a special credit designed specifically for these individuals, and it entitles them to a credit against their total tax liability. The Earned Income Tax Credit is also available to disabled taxpayers and parents with a disabled child who meet the income requirements. Taxpayers who pay for the cost of a caregiver to provide care to a dependent while they work or look for work can claim the Child or Dependent Care Credit to recoup some of these expenses.

Using these tax breaks can make it easier for the handicapped and their caregivers to afford the medical care and services they need. If you are unsure if you can claim one of these credits or deductions, speak with a qualified tax preparer who can help you evaluate your eligibility.