It’s Tax Time: Do You Know Where Your Deductions Are?
- Author Pam Taylor
- Published March 14, 2008
- Word count 325
People with disabilities often have a much greater range of potential expenses to deduct when tax time rolls around according to Disaboom, the largest online community for people with disabilities. As is the case for other taxpayers, expenses must exceed 7.5% of the person’s adjusted gross income (AGI) to be deductible.
If your medical and dental expenses for the year have exceeded the 7.5% requirement there are many items that qualify as deductions. Disaboom provides a comprehensive list of potential deductions at disaboom.com.
In addition to these medical and dental expenses, you may also be able to deduct some home improvement expenses, under the following circumstances:
•The main purpose of the home improvement must be for medical care
•The cost of the home improvement is offset by the increased value of the home
What about car deductions? The expenses incurred when retrofitting or adapting a vehicle can be substantial, so it’s wise to pay attention to the tax impacts here. Specifically, a person may deduct:
•The difference between the cost of a regular car and a car designed to hold a wheelchair
•Special hand controls and other special equipment required
With all of the expenses that are deductible, what is not deductible? A general rule of thumb is that if something’s a necessary part of life and the expense is recommended by a physician, it’s a deductible expense.
It’s important to always keep and be able to produce all the documentation related to any deductible expense as they may be required during an audit. If the receipts and other documentation cannot be presented, the expense could be denied, resulting in having to repay the original amount deducted plus penalties and interest to the IRS.
Launched in 2007, Disaboom has dedicated itself to improving the quality of life for people with disabilities. Learn more about what can be deducted and what can’t by visiting disaboom.com and visiting Disaboom’s "Living" channel.
http://www.disaboom.com/info/education/
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