If you are disabled there is a variety of tax credits available. By using these credits and deductions you can lower the amount of taxes you may owe, sometimes this can even lead to a refund. The IRS defines as being disabled by the following two conditions:
You are physically or mentally disabled that limits your ability to work, such as deafness and blindness.
You are impaired physically or mentally and it affects your ability to do common tasks that would affect your ability to work, such as walking, speaking, or breathing impairments.
There are a few different tax credits available for those who are disabled. These include; A credit for elderly/disabled, a credit for medical expenses and a larger standard deduction.
Elderly/Disabled Credit
If you happen to be permanently disabled at your retirement you may possibly be able to receive this credit. This credit has an income limit though. If you are single and disabled you cannot have an adjusted gross income greater than $17,500.
The Standard Deduction
If you are disabled you may be able to receive a larger standard deduction when you file your taxes. The amount of this standard deduction is determined by a number of factors such as your filing status, if you are claimed as a dependent on someone else’s tax return and if you are considered blind and disabled.
Medical Expenses
By itemizing your medical expenses you can save more money when you file your tax return. Any out of pocket payment and health insurance premiums maybe qualify to be deducted. This deduction has a limit of 10% of your adjusted gross income, although if you are over the age of 65 you are still subject to 7.5% of AGI through 2017.
