Disability and Taxes: 9 Facts To Know If You're Filing as a Disabled Adult скачать в хорошем качестве

Disability and Taxes: 9 Facts To Know If You're Filing as a Disabled Adult

Thank you for watching! Please be sure to like, comment and subscribe to our channel. You can also learn more by visiting: https://taxreliefprofessional.com/tax... The federal tax code allows specific provisions for adults on disability, but they’re peppered with stipulations. Here are 10 facts to be aware of if you’re filing your tax return as a disabled adult. 1. If you’re on permanent disability, you may be eligible to receive specific tax deductions in perpetuity. The IRS allows you to claim deductions for a permanent disability if the disability restricts you from engaging in any substantial gainful activity due to a physical or mental condition. A statement from your doctor explaining what your disability is and your prognosis for gainful activity is required to support your claim. That’s not to say that you’re permanently bed-ridden. If you’re able to do laundry, wash dishes or sweep the floor, there’s still potential for a permanent disability status in regard to the federal tax code. However, the volume and intensity of household activity will be considered when determining your eligibility to file for permanent disability. 2. Some disability payments aren’t taxable. The cause of your disability determines whether your payments are taxable or not. For example, if you became disabled during military service, your disability payments aren’t taxable. Benefits received for blindness or a car accident that wasn’t your fault aren’t taxable either, as well as disfigurement or loss of body function in some cases. 3. You may be eligible for a credit. Regardless of whether your disability income is taxable, a significant tax credit may be available to you if you’re also elderly and make less than $17,500 annually. If you were completely and permanently disabled when you retired and you make less than $17,500 per year, you may also be eligible for this beneficial credit. 4. You may be able to deduct some medical expenses. Health insurance premiums and out-of-pocket medical expenses may be deductible if they exceed 10 percent of your adjusted gross income. For example, if your adjusted gross income is $20,000 annually and your medical expenses are $3,000 annually, you’ll be able to deduct $1,000. 10 percent of $20,000 is $2,000. Anything over the $2,000 is deductible: in this case, $1,000. 5. Save money without risking your disability eligibility by opening an ABLE account. ABLE is the acronym for tax-advantaged savings accounts for disabled people called Achieving a Better Life Experience. There are limits to how much you can contribute to these special savings accounts so become familiar with the stipulations before opening one. 6. You may qualify for a higher standard deduction. Certain qualifications, such as blindness, allow you to claim a higher standard deduction, allowing you to save money on tax payments. The stipulations for this benefit are determined by your age, blindness status and whether another taxpayer can claim you as an exemption. 7. You may be able to deduct work expenses. If you pay for special services that allow you to work with your disability, these expenses may also be deductible. A wheelchair, guide dog and sign language interpreter are good examples of work expenses that can be deducted if you’re filing your taxes as a disabled adult. These are in addition to standard itemized deductions for medical expenses so be thorough in your record-keeping. 8. You may be eligible for the earned income tax credit. The IRS may also allow you to claim the earned income tax credit. In order to claim this credit, you need to be between the ages of 25 and 65 and the level of income you need to have depends on the number of children you have. 9. Careful record-keeping can go a long way. Preparing a tax return for a disabled adult can be complicated. Having thorough records and supporting documentation in one place can help you make important determinations during tax season. Finally, no matter how complicated the process seems, take extra care to take advantage of the programs you qualify for and maximize your deductions. This ensures that you’re paying no more than your fair share of your income tax obligations. If you need more help navigating this process, there’s a wealth of information on our blog. Take a look!