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What is the Disability Tax Credit?

What is the disability tax credit?

The disability tax credit is a tax credit that can be claimed by anyone that has either a physical or mental disability that prevents you from attaining consistent employment.

Who qualifies for the disability tax credit?

  • Anyone under 65-years-old on permanent disability.
  • Anyone receiving disability income from an employer.

How do you prove disability status?

You will need to obtain a statement from your doctor certifying you are totally disabled.

What are Income Requirements of the Disabled Tax Credit?

Even if you qualify, you cannot take this credit if your adjusted gross income [1] is equal to or more than the following amounts for each filing status [2]:

  • $17,500 for single, head of household, or qualifying widower with dependent child [3]
  • $20,000 if you are married filing jointly and one spouse qualifies
  • $25,000 if you are married filing jointly and both spouses qualify
  • $12,500 if you are married filing separately and you lived apart from your spouse at all during the year of 2012

Elderly Tax Credit

If you are over 65-years-old, you are eligible to claim the Elderly Tax Credit [4]. To claim the elderly tax credit, you do not need to be disabled.

Where is the Disability Tax Credit Used?

You can file for the disability tax credit on Schedule R on Form 1040 or Schedule 3 on Form 1040A.

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