Living and Working 

                                                           with Disabilities
                                                           This publication presents basic information about existing tax credits and benefits that 
A series of informational publications designed to educate may be available to qualifying taxpayers with disabilities, parents of children with 
taxpayers about the tax impact of significant life events.
                                                           disabilities, and businesses or other entities wishing to accommodate persons with 
                                                           disabilities.
                                                            
                                                           Tax Benefits and Credits

More detailed information on these topics can be found in IRS Publication 907, Tax Highlights for Persons with 
Disabilities, and in the other publications cited below.

AS A PERSON WITH A DISABILITY, you may qualify for  resource for at least 12 months from when your receive it for benefits 
some of the following tax deductions, income exclusions, and credits.  or assistance under any Federal program or under any State or local 
More detailed information may be found in the IRS publications  program financed in whole or in part with Federal funds. It is always 
referenced.                                                               best to check with your local benefit coordinator to find out if your 
Standard Deduction: If you are legally blind, you may be entitled to a    benefits fall under this provision.
higher standard deduction on your tax return.                             You must file a tax return to determine your eligibility to claim the EITC. 
See IRS Publication 501                                                   Many people with disabilities miss out because they owe no tax so 
Gross Income:   Certain disability-related payments may be excluded       they do not file a tax return. 
from gross income. Allowances paid by the Department of Veterans          See IRS Publication 596
Affairs (VA) and Supplemental Security Income (SSI) are not included      AS  A  PARENT  OF  A CHILD WITH  A DISABILITY, 
in gross income.                                                          you may qualify for some of the following tax exemptions, deductions 
See IRS Publication 525                                                   and  credits. More detailed  information  may  be  found  in the IRS 
Impairment-Related Work Expenses: If you are an employee and have         publications referenced.
a physical or mental disability that functionally limits your employment, Dependents: You may be able to claim your child as a dependent 
you may be able to claim business expenses for attendant care at your  regardless of age if they are permanently and totally disabled.
workplace and other expenses in connection with your workplace that       Permanently and totally disabled:
are necessary for you to work.                                            •  He or she cannot engage in any substantial gainful activity because 
See IRS Publication 529                                                   of a physical or mental condition.
Credit for the Elderly or Disabled: You may be able to claim this         •  A doctor determines the condition has lasted or can be expected to 
credit if you are 65 or older or if you are under 65 and you retired on   last continuously for at least a year or can lead to death.
permanent and total disability. 
See IRS Publication 524                                                   Dependent with a disability working at Sheltered Workshop:  You 
                                                                          may be able to claim a dependency exemption for a qualifying child 
Medical  Expenses:  are  the costs of  diagnosis, cure, mitigation,       or qualifying relative. Gross income does not include income from 
treatment, or prevention of disease, and the costs for treatments         services the individual performs at a sheltered workshop however they 
affecting any part or function of the body. They include the costs        must still meet the other dependency tests.
of equipment, supplies, and diagnostic devices needed for these 
purposes. They also include dental expenses.                              See IRS Publication 501
See IRS Publication 502                                                   Adoption Credit: You may be able to claim an adoption credit and 
Earned Income Tax Credit (EITC): is a tax credit for certain people who   exclude employer-provided adoption benefits from your income if you 
work and have low to moderate earned income. A tax credit usually         adopt a child with special needs.
means more money in your pocket. It reduces the amount of tax you         See IRS Publication 907
owe. The EITC may also give you a refund. Many working individuals        EITC for parents of children with disabilities: You may qualify for 
with a disability that have no qualifying children, who are at least 25  this credit if your qualifying child is permanently and totally disabled, 
years of age but under 65 years of age, qualify for EITC. Earnings  regardless of age, as long as you meet the other requirements.
for EITC purposes can include disability benefits you receive from        See IRS Publication 596
your employer's disability retirement plan, until you reach minimum       Child or Dependent Care Credit:    You may be entitled to this 
retirement age.                                                           credit If you pay someone to come to your home and care for your 
Refunds received from the EITC the Child Tax Credit (CTC) or other  dependent or spouse regardless of their age if they are unable to care 
refundable credits are not considered income and is not counted as a  for themselves. Persons who cannot dress, clean, or feed themselves 
                                                                                                                          continued...„

Living and Working 
with Disabilities (continued...)„

because of physical or mental problems are considered not able to care  •  Publication 525, Taxable and Nontaxable Income
for themselves. Also, persons who must have constant attention to         •  Publication 529, Miscellaneous Deductions
prevent them from injuring themselves or others are considered not 
able to care for themselves.                                              •  Publication 524, Credit for the Elderly or the Disabled
See IRS Publication 503                                                   •  Publication 502, Medical and Dental Expenses
Medical Conferences: You can include in medical expenses amounts  •  Publication 596, Earned Income Credit (EIC)
paid for admission and transportation to a medical conference if the 
                                                                          •  Publication 503, Child and Dependent Care Expenses
medical conference concerns the chronic illness of yourself, your 
spouse, or your dependent.                                                •  Form 8826, Disabled Access Credit
See IRS Publication 502                                                   •  Form 3800, General Business Credit
AS A BUSINESS WISHING TO ACCOMMODATE                                      •  Form 5884, Work Opportunity Credit
PERSONS WITH DISABILITIES, you may qualify for some 
                                                                          IRS Alternative Media Center (AMC)     – all IRS documents are 
of the following tax credits and deductions. More detailed information 
                                                                           accessible to persons using assistive technology, including screen 
may be found in the IRS publications referenced. Disabled Access 
                                                                           reading software, refreshable Braille displays, and voice recognition 
Credit: This is a tax credit for an eligible small business that pays or 
                                                                           software.
incurs expenses to provide access to persons with disabilities. The 
expenses must be to enable the eligible small business to comply with       For more information about products and services the IRS 
the Americans with Disabilities Act of 1990. (IRS Code Section 44)         provides to taxpayers with disabilities, visit the accessibility pages 
See IRS Publication 535 and Form 8826                                      on www.irs.gov. To order hard-copy Braille or large print, call the 
                                                                           IRS at 1-800-829-3676. 
Barrier Removal Tax Deduction: Businesses may be able to take an 
annual deduction for expenses related to removing physical, structural,   Videos in American Sign Language (ASL) – ASL Videos are hosted 
and transportation barriers for people with disabilities.                  on the IRS YouTube channel at www.youtube.com/IRSvideosASL. 
See IRS Publication 535                                                    You are welcome to post the videos on your Web site as well.
Work  Opportunity  Tax Credit: This  credit  provides employers  with     Taxpayer Advocate Service (TAS) – TAS is your voice at the IRS. TAS 
an incentive to hire persons from certain population groups having         is an independent organization within the IRS and helps taxpayers 
a particularly high unemployment rate or other special employment          resolve problems with the IRS and recommend changes that will 
needs,  such  as  Supplemental  Security  Income  (SSI)  recipients,       prevent the problems. 
Vocational Rehabilitation referrals and Veterans with disabilities.        For more information about TAS, visit www.irs.gov/advocate or call 
See IRS Form 5884, Form 3800, and Form 8850                                the toll-free phone number at 1-877-777-4778.

REQUEST FOR PUBLICATIONS „
                                                                          FREE TAx PREPARATION ASSISTANCE „
All of the following forms and publications are available electronically 
                                                                          Volunteer Income Tax Assistance (VITA) Sites offer free tax return 
from the Internal Revenue Service at www.irs.gov, 24 hours a day, 7 
                                                                          preparation to individuals having low to moderate income. Call 
days a week.
                                                                          1-800-906-9887 for a VITA site near you or visit the VITA Locator Tool. 
For a free paper copy of any listed form or publication call 1-800-
829-3676 (1-800-TAX-FORM). For additional questions about these           CONNECT WITH THE IRS „
credits and benefits you can call 1-800-829-1040. If you use TTY/TDD      The IRS uses social media tools to share the latest information on tax 
equipment, call 1-800-829-4059 to order forms and publications and        changes, initiatives, products and services. Connect with the IRS at 
to ask tax questions.                                                     IRS New Media. 
•  Publication 907, Tax Highlights for Persons with Disabilities
•  Publication 501, Exemptions, Standard Deduction, and Filing 
Information
•  Publication 535, Business Expenses

                    Publication 3966 (Rev. 9-2013) Catalog Number 33430K  Department of the Treasury  Internal Revenue Service  www.irs.gov