Benefits for Disabled People

Disability means leprosy-cured, blindness, low vision, loco motor disability, hearing impairment, mental illness and mental retardation. The person suffering from disability means the person who is suffering from disability that is more than 40% of any disability. There are certain benefits given to the disabled person due to their disability. Here, are few of the tax benefits for disabled people.

Tax Benefits for Disabled People

1. Standard Deduction:

The taxpayers who are legally blind can be entitled to a higher standard deduction on the tax return.

2. Gross Income:

Some of the disability-related payments, Supplemental Security Income and Veterans Administration disability benefits are been excluded from the gross income.

3. Impairment-Related Work Expenses:

The employees who have a mental or physical disability which limit their employment may be able to claim the business expenses that are in connection with their workplace. These expenses are necessary for the taxpayer to work.

4. Credit for the Disabled or Elderly Person:

This type of credit is usually available for certain taxpayers who are of 65 years of age or more and it is also available for certain disabled taxpayers whose age is less than 65 years and are retired on term of total and permanent disability.

5. Medical Expenses:

The medical expenses of the disabled person can be deducted if their deductions are itemized by using the Form 1040, Schedule A.

6. Earned Income Tax Credit:

These types of tax benefits for disabled person are available for the disabled taxpayers and also to the parents of a child who has a disability. If the person is retired on disability then the taxable benefits which he or she receives under their employer’s disability retirement plan are considered as the earned income until the person reach the minimum retirement age.

The earned income tax credit is a tax credit that not only reduces the tax liability of the taxpayers but it may also result in refund. There are many working individuals who are disabled and have no qualifying children but are older than 25 years of age and are younger than 65 years of age qualify for earned income tax credit. In addition, if the child of taxpayer is disabled then the age limitation for the earned income tax credit is been waived.

The income tax credit has no effect on certain public benefits. Any refund which you receive because of it will not be considered as income when determining whether you are eligible for the benefit programs such as Medicaid and Supplemental Security Income.


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Over 15,000 success stories

We had the Disability Tax Credit, but did not realise that there was so much more that we qualified for! When our son was thirteen someone mentioned to us that we should apply for a disability tax credit. We completed all the paperwork and sent it in to the government with an expectation that our request would be approved.

– Barbara & Harvey Bloomfield

I am a mother now to a teenage son who has a behavioral disability [ADD]. My son’s history of diagnosis came about when he was three years old. We migrated to Canada when he was four and the school that he attended reverted to an institution for further evaluation of his behavior. As he grew up, we underwent several psychological assessments, special therapies, school IEP and community programs. On our part as parents, rearing him was quite a struggle as my son in major aspects and appearance is normal but the behavioral and mental maturity is behind.

– Mrs. Maria Griselda