Tax season is upon us, which means its time to gather your receipts, review your accounts and get to work on your annual return. It can be difficult to determine which deductions and credits you may qualify for, and those factors may seriously effect the outcome of your return. Fortunately, people with disabilities recently received some guidance from the IRS about deductions and credits that may help.
There are several types of disability benefits, including Veterans Administration benefits and Supplemental Security Income, are exempt from gross income for the purpose of calculating tax. That could mean a lower tax bill overall. In addition, if a disability requires you to incur extra business expenses, those expenses may be claimed.
There are also credits available for elderly or disabled taxpayers, as well as the Earned Income Tax Credit, which is available to both disabled taxpayers and parents of children with disabilities. And itemizing deductions on form 1040 may allow you to deduct certain itemized medical expenses. All of these can contribute to a lower tax bill but they can also trip you up if you handle them improperly.
If you have questions or concerns about your tax return, the stakes can be high. A mistake can delay your refund or, even worse, subject you to an IRS audit or other enforcement action. If the IRS suspects you are connected to tax fraud or cheating, you may have to pay back taxes, hefty fines or even face serious criminal charges.
It is important to contact someone to can help. An experienced tax law attorney can help you review your return, advise you of the laws governing your taxes and help you protect yourself, your finances and your future.
Source: Clarksville Online, “IRS says Tax Benefits available for those with Disabilities,” March 1, 2013