![]() Impairment-related work expenses can also be deducted from your income for benefit eligibility purposes. ![]() They not only reduce your income taxes, but your self-employment (Social Security and Medicare) taxes as well. ![]() If you're self-employed, you can deduct IRWEs as business expenses on IRS Schedule C. If you do itemize your deductions, you can deduct the full amount of your unreimbursed impairment-related expenses from your income. Since the Tax Cuts and Jobs Act increased the standard deduction by a large amount, fewer people now claim IRWEs (you should itemize your deductions only if all your personal deductions exceed the standard deduction). If you work as an employee, you can deduct these expenses only if you itemize your personal deductions on IRS Schedule A, instead of taking the standard deduction. People with low vision can deduct blindness-related work expenses (BWE), such as the cost of Braille translation of work materials. For example, a person who is hard of hearing could deduct the cost of a text telephone or assistive computer software. IRWEs are the costs of disability-related services that you need to do your work. If you have a disability that limits your ability to work or substantially limits a major life activity, such as walking, breathing, learning, or using your hands, the IRS allows you to deduct your impairment-related work expenses (IRWE) from any employment income or self-employment income. Impairment-Related Work Expenses Deduction What if you're blind and over 65? You can get the additional deductions for both blindness and being over 65. If you're single, you get an additional deduction of $1,800, and if you're married, each spouse over 65 gets an additional deduction of $1,500. If you're over 65, you also qualify for an additional deduction. To qualify for the larger standard deduction for blindness, the IRS uses a definition similar to Social Security's requirement for blindness: you must not be able to see better than 20/200 in the better eye with glasses or contact lenses, or your field of vision must be 20 degrees or less. If your total income is less than these amounts, you actually don't need to file a tax return, but you do need to file a tax return to request tax credits. (But if you're blind and married, each spouse who is blind gets only a $1,500 increase, for a total standard deduction of $30,700.) Thus, if you're single, your standard deduction would be $15,6. If you're blind, you get an additional deduction of $1,800. The standard deduction for a married couple filing a joint tax return is $27,700. For instance, for the 2023 tax year, the standard deduction for a single person is $13,850. The amount you're allowed to deduct depends on your filing status and is adjusted for inflation each year. You take the standard deduction instead of totaling up and deducting your actual personal expenses. If you are blind or have low vision that the IRS counts as blindness, you qualify for a larger "standard deduction." The standard deduction is the dollar amount you're allowed to deduct each year to account for personal expenses such as medical expenses, home mortgage interest and property taxes, and charitable contributions. For example, if you're in the 12% tax bracket, a $100 deduction will save you $12 in income tax. ![]() The amount a deduction will save depends on your top tax rate. A tax deduction reduces your taxable income, so the more deductions you have, the less income you'll have to be taxed, and the less tax you'll have to pay. Special Deductions for People With Disabilitiesįirst we'll look at deductions. These deductions and rules are in addition to several tax credits that help recipients of disability benefits. A number of tax deductions and exclusions benefit people who are on SSDI or SSI, and they can also gain from a few special rules for tax-advantaged savings and retirement accounts.
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