Don't overlook disability tax breaks
Many taxpayers don’t claim all the income tax breaks they’re due. The rule of thumb is: Any dollars you spend compensating for the effects of disability that your nondisabled neighbor didn’t have to spend may be deductible.
Publications by the Internal Revenue Service (see www.irs.gov) indicate these possible deductions:
See IRS publication 502.
Impairment-related work expenses
See IRS Publication 502.
Unreimbursed business expenses may be deducted, provided they’re necessary to keep you employed.
Earned income tax credit (EITC)
See IRS Publication 596.
This credit for extremely low-income individuals also benefits moderately low-income families with “qualifying” children. Disabled children of any age, including adults, may qualify, so long as the child lives with the parent(s). Even if you don’t owe any taxes, the EITC can mean money back in your pocket — $1,800 is the average refund for families with children.
Child/Dependent care credit
See IRS Publication 503.
This credit isn’t just for kids. It also benefits those who pay for care of a disabled adult child or spouse while they work or look for work. There’s no upper income limit.
Editor's note: Parts of this article have been deleted due to updated IRS guidelines for disability tax deductions. (10-2008)