Disability Deduction

Information by State  Print version   Calculating Adjusted Income   Deductions by Household Type   Elderly/Disabled Household Deductions   Dependent Deductions   Child Care Deductions   Medical Deductions   Disability Deductions   Both Medical and Disability Deductions Calculating Income Eligibility Contents   General Requirements   Three Definitions of Income   Calculating Adjusted Income   Calculating Assistance Amounts   Calculator

Disability assistance expenses can be deducted from a household's "annual income" to the extent that they exceed three percent of annual income. The purpose of this deduction is to recognize expenses for the care of a disabled person that enables the disabled person or some other family member to work.

Disability assistance expenses may include the cost of a care attendant and/or auxiliary apparatus that enables a household member, including the disabled member, to work.
Expenses may be deducted if and only if all of the following conditions are met:

1. they are reasonable,
   
2. they are not reimbursed from another source (such as insurance),
   
3. they enable a household member to work,
   
4. they do not exceed the amount of income generated by the person enabled to work, and
   
5. they are in excess of three percent of annual income.

Consider the following examples:

Jane and John Doe have a disabled 17-year-old son (John, Jr.). Jane can go to work if a care attendant takes care of John, Jr. The cost of the care attendant would be an eligible disability assistance expense.

Samuel Brown, age 35, uses a wheelchair. The wheelchair and a specially adapted automobile enable John to go to work. The cost of his wheelchair and the adaptations to his automobile are eligible disability assistance expenses.

Sue Peters, age 40, uses a wheelchair and a specially adapted automobile. Her income comes from a disability pension. The costs of the wheelchair and the adaptations to the automobile are not eligible disability assistance expenses because no family member is enabled to work.
Sue's disability does, however, qualify her as a disabled head of household. Thus, she may be entitled to a medical expenses deduction for the wheelchair (but not the adaptations to the automobile.)

Some households may qualify for deductions of both disability assistance expenses and medical expenses. Click here for important information about calculating allowable deductions when both expenses apply.