Tax Benefits for Disabled Taxpayers Filing 2015 Income Tax Returns

tax benefits for disabled taxpayers

Reducing tax liability is probably the most important consideration for anyone filing their 2015 income tax return. While most of us are able to claim at least a few credits and deductions, disabled filers have the opportunity to claim their own deductions and credits that make it much less expensive to file income taxes. Each of these deductions is designed to ease the tax burden of the disabled, and it’s our hope that you already know about each one. If not, we can help you lower your tax liability and your stress level just a bit if you are disabled and worried about your taxes.

Increased Standard Deduction

Unfortunately, one of the disabilities that comes with growing older might include losing your vision. If you are legally blind during the tax year, you are eligible to claim this deduction. It’s worth up to $1,550 more than what you get now, and it’s worth it if you have a vision issue.

Credit for the Elderly and/or Disabled

This is a credit worth $5,000 for single filers and $7,500 for married filers. For elderly filers, you have to be 65 or older by the end of the tax year (for 2015 you’d need to have turned 65 on or before December 31). If you haven’t reached that age but you are disabled, you still qualify.

Nontaxable Payments

Another consideration is that many payments you received for being disabled are tax-exempt. This means you do not pay taxes on them. These payments include the following:

  • Benefit payments from welfare for disabilities
  • Payments due to blindness
  • Workers’ compensation
  • Compensatory damages from illness or sickness
  • Compensation for loss of any bodily function
  • Compensation for disfigurement
  • Disability benefits from a no-fault accident in which injuries were suffered

Each of these different payments and tax credits is available for anyone with a disability. To ensure you meet the requirements for each disability credit, be sure you have a signed note from your doctor documenting your ailments and disabilities to keep with your tax files and paperwork for the next 7 years.

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