What Deductions Can You Claim for Being a Disabled Person?

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Being a disabled person comes with certain tax deductions that you're going to want to keep in mind come tax season. Find out about what deductions you can claim for being a disabled person with help from a top insurance attorney in this free video clip.

Part of the Video Series: Disability Insurance & More
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Video Transcript

I'm Frank Darras, America's Top Insurance Lawyer. Let's get you some deductions today if you're a disabled person. As well know, living with a disability requires making constant adjustments and adapting to your environment, specialized equipment, additional medical care and coping with a disability can get expensive. Those living with disabilities often overlook the opportunities for tax deductions that help reduce the extra cost associated with being disabled. To take advantage of those deductions, you need to itemize your costs. If you modify your home to widen the doorways, install wheelchair rim, add a handicap accessible bathroom or shower facility or any other changes to accommodate your disability, folks, you can deduct part of the costs of these improvements from your taxes. The IRS classifies home modifications under medical deductions so they're subject to the 7.5 percent annual limit. This means you can only deduct the modification amounts by which they exceed 7.5 percent of your adjusted gross income. Also, you can only deduct the amount that's in excess of the value of the charges you add to your home. For example, if you install a second bathroom n the ground floor, you can only deduct the cost over the additional value of the bathroom adds to your house. It's a good idea to get a professional appraisal to determine what this value is. And your car folks works the same way. If you paid to equip your car with wheelchair lift or a pedal or hand controls, the cost of these modifications can be part of your medical expense deductions. Again, you can only deduct the amounts that are more than 7.5 percent of your adjusted gross income. If you pay for a guide dog, a wheelchair, artificial limbs, you can deduct the costs not covered by your insurance or for which you aren't otherwise reimbursed as medical expenses. Again, that 7.5 percent rule applies. Expenses you incur to adapt your work space for your disability are also deductible as employee business expenses. For example, a special chair or if you're blind and subscribed to Braille, these are all deductible expenses. These fall under the miscellaneous deductions and are subject to the two percent rule where you can only deduct the amounts over two percent of your adjusted gross income. If you're disabled and working part or full time, either inside or outside your home, you can claim impairment related work expenses. To qualify, you must have an impairment that substantially limits one or more of your major life activities; manual tasks, walking, speaking, breathing, learning and working. Unlike medical expenses or un-reimbursed employee expenses, these deductions are a hundred percent deductible. It is hard enough to manage everyday with disabling conditions. You've got restrictions and limitations, take advantage of all the modifications that you've used, get those deductions. I'm Frank Darras, Founding Partner of Darras Law in Ontario, California.


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