Tax Credits and Deductions for People With Disabilities

Tax Breaks for People with Disabilities

Taxpayers with disabilities can claim the same deductions and credits as anyone else, plus a few that are specifically for them. Key tax breaks include:

• Additional standard deduction

• Credit for the elderly or disabled

• Earned Income Tax Credit (EITC)

• Child Tax Credit (CTC) & Additional Child Tax Credit (ACTC)

• Credit for Other Dependents (ODC)

• Child and Dependent Care Credit

• Medical expense deduction

• Home office and accessibility improvement deductions

• Work-related disability expense deduction

• Deduction for unlawful discrimination claims

• Business tax credits (3 types)

  
  

Below, we have an overview of each tax credit. If you have specific questions, you can get more details by visiting the IRS website or consulting a tax professional such as a CPA, EA, or IRS agent.

An older gentleman holding a little dog while being pushed on a wheelchair

Additional standard deduction

If you were legally blind or you were 65 or older by the end of 2023, you can receive an additional standard deduction of $1,850. If you’re blind and at least 65 years old, you can receive double the amount ($3,700). Note that you qualify as 65 years old starting on the day before your birthday. 

Credit for the Elderly or Disabled

You may qualify if you’re 65 or older, or permanently and totally disabled (as certified by a doctor).

SSI or SSDI recipients may be eligible, but strict income limits apply—many SSDI and VA disability recipients may earn too much to qualify.

As of 2023

IF your filing status is...		THEN enter on line 10 of Schedule R...
single, head of household, or qualifying surviving spouse and, by the end of 2023, you were:
	•	65 or older	$5,000
	•	under 65 and retired on permanent and total disability1	$5,000
married filing a joint return and by the end of 2023:
	•	both of you were 65 or older	$7,500
	•	both of you were under 65 and one of you retired on permanent and total disability1	$5,000
	•	both of you were under 65 and both of you retired on permanent and total disability2	$7,500
	•	one of you was 65 or older, and the other was under 65 and retired on permanent and total disability3	$7,500
	•	one of you was 65 or older, and the other was under 65 and not retired on permanent and total disability	$5,000
married filing a separate return and you didn't live with your spouse at any time during the year and, by the end of 2023, you were:
	•	65 or older	$3,750
	•	under 65 and retired on permanent and total disability1

Table from the IRS - Publicaton 524

Taxpayers with disabilities can qualify for the Earned Income Tax Credit (EITC) if they have earned income within certain limits.

• If you don’t have children, the income limit is $17,640 for single filers and $24,210 for married couples filing together. The credit can be up to $600.

• You can also qualify if you have a child or adult dependent with a disability.

• Income limits go up with each dependent, and the credit increases too, starting at $3,995 for one dependent and up to $7,430 for three or more.

Child Tax Credit (CTC)In 2023, parents who meet the income rules can get up to $2,000 per child as a tax credit. This includes children with disabilities.

To qualify, your child must be under 17 and have lived with you for more than half the year. You must have paid for at least half of their care. Your income must be below $400,000 if you’re married filing together, or below $200,000 if not.

Additional Child Tax Credit (ACTC)If your child tax credit is more than the taxes you owe, you might qualify for this credit. It can give you back up to $1,600 even if your tax bill is zero.

Credit for Other Dependents (ODC)If your dependent isn’t your child, like an adult sibling or parent with a disability, you may get a $500 credit for each eligible dependent.

Child and Dependent Care CreditIf you pay for care for a child or adult dependent with disabilities while you work or look for a job, you can deduct some of those costs.

You can deduct up to $3,000 for one dependent or $6,000 for more than one. There are income limits too.

Medical Expense DeductionIf you had big medical or dental expenses in 2023, you might be able to deduct some.

You can only deduct the part of your expenses that is more than 7.5% of your income, and you have to itemize deductions. You can’t deduct expenses paid or reimbursed by insurance or workers’ comp.

For details on what you can deduct, check IRS Publication 502.