According to the last census, nearly one in five people in the U.S. had a disability. Whether a physical, mental, or emotional disability results at birth or arises as some other point during a person’s life—from an accident, service-related event, or otherwise, the financial cost of care can be substantial. The tax law provides some relief for taxpayers and their families for various costs related to having special needs. And there are some favorable rules for certain types of income received on account of disability. Here is a summary of the tax rules related to the disabled.
Equipment, Home Modifications
Equipment needed by a disabled person and certain home modifications to accommodate a disability may be treated as a deductible medical expense. These and other out-of-pocket medical costs are deductible to the extent they exceed 10 percent of adjusted gross income.
