If you are disabled, you may qualify for a number of IRS tax deductions, credits and significant tax relief in the form of income exclusions, which will help to lower any taxable income. You must meet the requirements for each provision. To claim these deductions, you must file Form 1040 or 1040A (not 1040EZ).
Instructions
1. Determine if you qualify for a higher standard deduction. If you are over the age of 65 or visually impaired, you should qualify for a higher standard deduction. Review worksheet 1040 or 1040A to determine your deduction. If you are partially blind, you must have a certified statement from your doctor confirming you cannot see better than 20/200 in one eye or that your field of vision is 20 degrees or less.
2. Determine how much of your income is exempt. This may include Veteran's Administration (VA) disability benefits and Supplemental Security Income (SSI).
3. Determine if you are eligible to take the IRS Credit for the Elderly and Disabled. You must be over 65 or retired due to permanent disability and have received disability income that was taxable to claim the tax relief.
4. Determine if your medical costs exceeded 7.5 percent of your income. If so, you may be eligible for tax relief by deducting excess medical costs. Medical costs may include expenses related to your disability such as special accommodations in your home or car and medications or treatment for your condition.
5. Determine if you are eligible for the Earned Income Tax Credit (EITC). If you do not have children and are between the ages of 25 and 64, your income must be less than $12,880 ($15,880 if married filing jointly). If you have one child, the income limits are $33,995, if single; $36,995, if married filing jointly. For two or more children, the income limits are $38,646 if single; $41,646, if married filing jointly.
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