• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10

Yes, it may be time to examine your federal income-tax records. Yes, I’m sorry to say, you or your family member or friend is still disabled. But, some federal tax benefits may be due you or them, and as a taxpayer and/or caregiver you understand knowledge is power, or you wouldn’t be visiting Disaboom.

First, the Internal Revenue Service (IRS) claims you must file your return, Boston Tea Party or not. IRS prefers the Electronic Federal Tax Payment System, and it beats wheeling to the post office.

WARNING!
Beware of folks who claim to get you a faster/bigger refund. The best you’ll do is pay exorbitant rates to borrow your own money for a time; worst case: you'll be behind bars with those who promised to trick the IRS.

You may take the Credit for the Elderly or Disabled if you’re 65 or older by Dec. 31, or retired on permanent/total disability. It’s a dollar-for-dollar tax bill reduction, with a maximum of $1,125  if you qualify on Adjusted Gross Income (AGI), Nontaxable Income,” and you’re retired on disability when you stopped working due to disability.

Generally, you qualify if you’re a U.S. citizen or resident at the end of the tax year and 65 or older. Younger taxpayers qualify if they’re retired on permanent/total disability, received taxable disability income, and didn’t reach mandatory retirement age before the beginning of the tax year.

Publication 907 has tax law of interest to people with disabilities and caregivers. It covers items you can deduct above 7.5 percent of your AGI on Form 1040, line 38. Qualifying expenses may include artificial limbs, eyeglasses, and hearing aids; wheelchair cost/maintenance; cost/care of an assistance animal, and home improvements that facilitate medical care, such as entrance and exit ramps (Publication 502).