It’s that time of year again – tax season! While taxes aren’t the most exciting topic in the world, and frankly most of us avoid thinking about them until that mid-April deadline starts to loom, taxes are a fact of life – and one people with disabilities should be prepared for.
While filing taxes can be a stressful exercise for anyone, individuals with developmental disabilities and those who care for them know taxes aren’t quite as easy as entering a few numbers into an online tax-filing program. Fortunately, U.S. tax law provides significant benefits for individuals with disabilities and their families, which is why we’ve put together a quick guide on some of those benefits.
While this guide provides a few resources to help you get started navigating the tax landscape, you should always consult with a tax professional for advice on your individual situation.
Publication 907 – Tax Highlights for Persons with Disabilities
While IRS publications aren’t exactly page-turners, being familiar with provisions in IRS Publication 907 can help give you an idea of the tax landscape for people with developmental disabilities. In short, “Publication 907 (2020), Tax Highlights for Persons With Disabilities” is an annual publication produced by the IRS aimed at assisting the disability community with preparing to file taxes. The publication covers everything from income to tax credits to deductions, as well as updated information regarding ABLE accounts.
Did You Know?
Some states offer a tax deduction or credit for ABLE account contributions. Check out this helpful tool from the ABLE National Resource Center for details about your state.
Get tax preparation assistance
If you do not currently work with a tax professional, there are several programs that will help you file your taxes for free. A great place to start is the National Disability Institute, which provides many free resources for the disability community in the areas of taxes and financial planning.
No matter your circumstances, getting professional consultation about your unique tax situation is the most important step in getting the most out of the tax benefits that could be available for you and your loved one. Taxes can sometimes be confusing and filing them is often a daunting task, but it could be well worth your while to explore the many tax benefits for which you may be eligible.