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Thread: Taxes and disabilities

  1. #1
    Senior Member RSieck's Avatar
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    Taxes and disabilities

    Started working this past year, and will finally be making enough again to have to pay taxes.. so excited. Anyways, is there anything I can write off? W/C van, meds, anything disability related? I'll take any suggestions. Thanks in advance.
    T8/9 (2-24-06)
    IOWA

  2. #2
    I believe the rule with medical expenses is that you can only deduct those that are over 10% of your adjusted gross income, and of course not those that were paid for by insurance.

    http://www.irs.gov/uac/Newsroom/Dedu...ental-Expenses

    (KLD)

  3. #3
    Since it was a little out of pocket pricy I had my doctor write up a medical need letter for my standing frame, SmartDrive might have been included in the letter too.
    I have had periodic paralysis all my life. I lost my ability to walk in 2011 beginning with a spinal block, which was used for a hip fracture caused by periodic paralysis.

  4. #4
    RSieck, I think you can just go wild and write off anything you want. I understand the IRS budget has been cut so badly almost no one will be audited.

  5. #5
    My brother-in-law is a pretty high up in a CPA firm. Years ago I asked the same question and his advice was that if you can get a letter from a physician or physician's assistant that states specifically what you have purchased can/is used for therapy in some manner, then you can write it off without any real fear of it being contested. Especially if the IRS shows up at your door and sees you in a chair. Last year I didn't spend much, but in previous years I have written off hand bikes, workout equipment, even tools for the garage. I wrote up the letter describing how the items help me in a therapeutic manner and had a PA sign off on it. And it's the truth in honesty. I got into woodworking and a small item like a cordless drill has helped my grip strength immensely. So in my letter I basically wrote that non-conventional items that cannot be found in a traditional therapeutic setting, such as woodworking and welding equipment, have beneficial value for hand/grip strength, finger dexterity, as well as a recreational therapy aspect. Playing Rockband guitar on Xbox helped my hand dexterity 10x what I was receiving in an outpatient facility, so yeah, I view that as medical. Pushing the edge of the definition... probably, but I can easily show how it has helped me physically. I specifically bought it for the use of helping my hands get better, and it worked, even though it hurt like hell and was extremely difficult at first, but that's therapy in general. Like ancientgimp said, go wild and write off anything you think can be argued as non-conventional therapy. But like SCI-Nurse said, it has to hit your percentage in order for it to actually get you money back. I think previously it was 7%, which I hit several years in a row. Now that it's been bumped up, I doubt I will have hit that last year.

  6. #6
    Quote Originally Posted by SCI-Nurse View Post
    I believe the rule with medical expenses is that you can only deduct those that are over 10% of your adjusted gross income, and of course not those that were paid for by insurance.

    http://www.irs.gov/uac/Newsroom/Dedu...ental-Expenses

    (KLD)
    Yep, that is what my accountant said. FSA cards are great and a good way to use pre-tax money on medical stuff.

  7. #7
    Senior Member TomRL's Avatar
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    If you are a person with disabilities, you can take a business deduction for expenses that are necessary for you to be able to work. If you take a business deduction for these impairment-related work expenses, they are not subject to the 10% limit (or 7.5% if either you or your spouse was born before January 2, 1950), that applies to medical expenses.

    You have a disability if you have:

    A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or

    A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working.


    Impairment-related expenses defined.

    Impairment-related expenses are those ordinary and necessary business expenses that are:

    ? Necessary for you to do your work satisfactorily,

    ? For goods and services not required or used, other than incidentally, in your personal activities, and

    ? Not specifically covered under other income tax laws.


    Where to report.
    If you are self-employed, deduct the business expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses.

    If you are an employee, complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses. Enter on Schedule A (Form 1040), that part of the amount on Form 2106, or Form 2106-EZ, that is related to your impairment. Enter the amount that is unrelated to your impairment on Schedule A (Form 1040). Your impairment-related work expenses are not subject to the 2%-of-adjusted-gross-income limit that applies to other employee business expenses.


    Example.


    You are blind. You must use a reader to do your work. You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. The reader's services are only for your work. You can deduct your expenses for the reader as business expenses.


    http://www.irs.gov/publications/p502...link1000179147
    Tom

    "Blessed are the pessimists, for they hath made backups." Exasperated 20:12

  8. #8
    I'm glad you posted this, TomRL, I used this method for years when working. As a wheeler couple we have numerous expenses for home maintenance - wish the Feds would provide an additional deduction for paras.

  9. #9
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    Clued-up with the info, I'll be needing a face-to-face tax assistance.

    Quote Originally Posted by TomRL View Post
    If you are a person with disabilities, you can take a business deduction for expenses that are necessary for you to be able to work. If you take a business deduction for these impairment-related work expenses, they are not subject to the 10% limit (or 7.5% if either you or your spouse was born before January 2, 1950), that applies to medical expenses.

    You have a disability if you have:

    A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or

    A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working.


    Impairment-related expenses defined.

    Impairment-related expenses are those ordinary and necessary business expenses that are:

    ? Necessary for you to do your work satisfactorily,

    ? For goods and services not required or used, other than incidentally, in your personal activities, and

    ? Not specifically covered under other income tax laws.

    ...

    Example.


    You are blind. You must use a reader to do your work. You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. The reader's services are only for your work. You can deduct your expenses for the reader as business expenses.


    http://www.irs.gov/publications/p502...link1000179147

    Hi! I am still a newbie here. And I?ve been reading all the threads pertaining to subject matters such as disability, caregiving, as well as , the topic about the veterans. I just recently unearthed about the tax deduction and advantage accounts on a website called InfoLongTermCare.org because I am actually worrying concerning the LTC insurance I already purchased for my sister. But the link from IRS.gov, that you have shared is more helpful. Can't help to express how grateful I am. Thanks, TomRL.
    Too old to work, but this is indeed a passion to endure!

  10. #10
    Senior Member TomRL's Avatar
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    That's what we are all here for. I'm glad I was able to provide you some help I have certainly gotten a lot of help myself.
    Tom

    "Blessed are the pessimists, for they hath made backups." Exasperated 20:12

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