Tax and Financial News for People with Disabilities

People with disabilities and their families may be able to get local, state, and federal tax relief. Below are some resources to explore. In addition, the winter issue of the Disability Services Beacon discusses tax relief at greater length: Tax Relief for People with Disabilities (PDF, 203K); Large Print (PDF, 127K); HTML

• Fairfax County offers personal property and real estate tax relief as well as a rental grants for persons who meet qualifying requirements. In addition, regardless of the owner's income, vehicles equipped for the transportation of persons with disabilities are assessed a reduced personal property tax rate. For more information on local tax relief, go to the Fairfax County Department of Tax Administration, or contact them at 703-222-8234, TTY 703-222-7594.

• Caregiver Grants. Virginia has a grant program which provides up to $500 for caregivers who provide assistance to a relative who has a physical or mental impairment. Certain qualifying conditions must be met, including limits on the income of the caregiver. Applications must be submitted no earlier than Feb 1, 2008 and not later than May 1, 2008. To download the application, go to http://www.dss.virginia.gov/family/as/caregiver.html. The application may also be requested by calling 703-324-7948 locally or 1-877-648-2817 in Richmond and leaving a message after the beep.

• Virginia offers the Home Accessibility for the Disabled Tax Credit. It allows taxpayers to deduct up to 25% of the cost of home modifications for accessibility, up to a maximum of $500.00. Unused credit can be carried over for up to 5 years. You must apply for and receive certification for the credit before claiming it on your tax return. File Form HAC (Home Accessibility Credit) with the Department of Taxation, Tax Credit Unit, P. O. Box 715, Richmond, VA 23218-0715. Applications must be received by March 15 of the year following the year in which the work was completed. The form is available online at www.tax.virginia.gov/site.cfm?alias=taxcredit, listed under “Home Accessibility Features for the Disabled Credit,” or by calling the Department of Taxation at 804-786-2992, TTY 711. To order forms call 804-440-2541.

• A variety of publications by the Internal Revenue Service are applicable to people with disabilities, including the following:
  • IRS Publication 501 - Exemptions, Standard Deduction, and Filing Information;
  • IRS Publication 502 – Medical and Dental Expenses;
  • IRS Publication 503 – Child and Dependent Care Expenses;
  • IRS Publication 524 - Credit for the Elderly or Disabled;
  • IRS Publication 525 - Taxable and Nontaxable Income;
  • IRS Publication 529 - Miscellaneous Deductions;
  • IRS Publication 554 - Older American’s Tax Guide.
  • IRS Publication 596 - Earned Income Credit
  • IRS Publication 907 - Tax Highlights for Person with Disabilities; and
  • IRS Publication 968 - Tax Benefits for Adoption
• Tax laws change frequently, so it is worthwhile to check eligibility each year.
  
  
  

• Some Useful Telephone Numbers and Web Sites

• IRS Taxpayer Advocate: 1-877-777-4778; TTY 1-800-829-4059
• IRS Questions: 1-800-829-1040; TTY 1-800-829-4059
• IRS (to order forms): 1-800-829-3676
• IRS Web site
• AARP Tax-Aide Site: 1-888-227-7669 or 7844, TTY 711
• Virginia Department of Taxation