Can I Claim My Disabled Adult Child on Oregon Income Taxes?
The state of Oregon largely bows to IRS regulations regarding income tax deductions and the exemptions residents can claim. If the IRS allows you to claim a disabled adult child as an income tax exemption, the state of Oregon does not disallow it when you file your state income tax return. However, Oregon tax codes specify certain other credits for the disabled of varying ages.
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Federal Rules on Disabled Adult Children
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The IRS allows parents to claim disabled adult children as dependent exemptions on federal income tax returns when the child is permanently and totally disabled. This status lets the child remain an exemption despite being over 19 years of age, provided that additional IRS rules regarding relationship, earnings and residence are met. The disabled adult cannot file a joint return for the tax year unless it is only to claim a tax refund. When he does, he must not claim himself as an exemption on his return. If your child meets the eligibility requirements of a federal qualifying child dependent exemption, you may also claim him as an exemption on your Oregon state tax return.
Child Disability Credit
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If your adult child is between the ages of 18 and 21, she may be eligible for the Child Disability Credit offered by the state of Oregon. To qualify, the child must be a dependent on your tax return and must be eligible for "early intervention services" or a part of special education classes that meet the U.S. Department of Education guidelines. Finally, the child must have a disability according to the guidelines of the Individuals with Disabilities Education Act. This act only offers services to children ages 3 to 21. The disability must be diagnosed as of December 31 of the tax filing year. You must have a current statement of eligibility and cover sheet in your personal health files to claim this credit. (Reference 2, p. 87)
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Child and Dependent Care Credit
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When your dependent, disabled adult child requires care while you go to work or look for work, you may be able to claim the child and dependent care tax credit for Oregon. Oregon is one of only 28 states that offer a state credit in addition to the federal credit. If you are able to claim the dependent care credit on your federal income tax return, you can claim the Oregon credit. The credit offsets your income tax owed. Refunds are not issued if your credit amount exceeds your tax due, but the credit can roll over and offset your taxes in the next filing year for up to five years.
Elderly and Disabled Tax Credit
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When your child qualifies for the federal income tax credit for the elderly or disabled, he may claim exactly 40 percent of the federal credit amount on your Oregon state taxes. To qualify for the federal credit, your adult child must have previously worked before developing a permanent or total disability that made engaging in a substantially gainful activity impossible. He must also receive a taxable disability payment within the tax filing year.
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References
- IRS.gov: Publication 17 (2010), Your Federal Income Tax -- Personal Exemptions and Dependents
- Oregon Department of Revenue; Publication 17-1/2 Individual Income Tax Guide; December 2010
- Oregon Department of Revenue; 2010 Oregon Income Tax Full-Year Resident; December 2010
- Greater Trenton EITC and Asset Building Campaign 2010: Paying for Child Care? The Child and Dependent Care Credit Could Help
- LexisNexis: How to Claim the Disability Tax Credit
- IRS.gov; Credit for the Elderly or Disabled; January 2011
