How to Get Tax Breaks for Disabilities

Artwork: Elizabeth D’Angelo

This page is a work-in-progress. Please comment below with ideas and input to improve this page.

  • Most people on Social Security do not file taxes. If you have other income or your spouse works then you may need to file taxes. SSI is never taxed. SSDI may be taxed under certain circumstances. Here are some basic tax rules for SSDI.
  • If you owe money from the past, you may be able to amend or refile past tax returns to change the amount you owe. Please see below to see if any of the rules below would apply to your past taxes.
  • If you own a house, most areas have special programs that will allow you to pay little or no property taxes if you have a disability. Check with your local government tax assessors office.
  • If you are planning to take an early withdrawal from your pension plan, you may also be eligible for a hardship withdrawal to avoid penalty fees from the company that manages your pension plan. Check your pension plan policy on hardship withdrawals. This is different than the IRS tax exception, you should do both things.
  • If you paid for an attendant or caregiver, you may be eligible to write this expense off of your taxes.
  • If you are disabled and low income, you may be eligible for a IRS Credit for the Elderly or Disabled. I believe this only applies to certain types of income.
  • If you didn’t use the above tax breaks and now you are having some regrets, I believe there is a way to amend past returns. Consulting with a tax accountant seems like a good idea to me.

Please post below if you have ideas to improve this page. If anyone has tried any of the above, please let us know how it went.

Success Story

“The IRS was taking a percentage of money out of my SSDI checks because of taxes I owed.¬†Well, I just sent them a letter stating that it was causing me to be homeless. They didn’t answer, so in a couple weeks, I sent a second letter.¬†After my 2nd letter they wrote back saying that they was sorry about inconveniencing me and they stopped taking my money. They said to let them know if my monetary situation changed to let them know. The debt expires after 10 yrs.” – Linda Love

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