People in Oregon who have applied for Social Security disability benefits may not be aware that the condition that makes them eligible for benefits could also enable them to take certain credits on their federal tax return.
For people who think they may qualify for some or all of the credits we will describe in this post, it may be a good idea to consult with an attorney who has experience working with people who apply for and receive Social Security or veterans' disability benefits.
Some of the tax credits and benefits for eligible people could include:
- Medical expenses: People with extensive medical expenses may be able to deduct them if they itemize their deductions. This is done on Schedule A of Form 1040.
- Elderly or disabled credit: Taxpayers under the age of 65 might be able to claim this credit if they are on total disability and retired.
- Standard deduction: Legally blind people may be eligible to take a larger standard deduction.
- Taxable benefits: Several benefits are not included for purposes of calculating gross income, which could reduce an individual's tax liability. These could include veterans' disability, Supplemental Security Income and other benefits.
- Impairment-related work expenses: People who are able to work but have significant expenses needed to overcome their disabilities might be able to deduct those expenses.
Of course, every individual's circumstances are different, so making sure the proper documentation is in place is essential. Another important thing to remember is the filing deadline: Monday, April 15.
Source: Clarksville Online, "IRS says Tax Benefits available for those with Disabilities," March 1, 2012