Medical Care

• If you intend to claim medical expenses on your taxes, calculate your adjusted gross income (AGI) first. Your adjusted gross income is determined by taking your taxable income and removing all the money that won’t be taxed, like deductions and credits. Once your medical care goes beyond 7.5 percent of your AGI, you can claim it on your taxes to further reduce your taxable income. Keep in mind that the first 7.5 percent cannot be claimed. To illustrate, if your AGI is $50,000 and you spent $4,000 on medical expenses, you can claim $250 in medical expenses. (7.5% X $50,000 = $3,750; $4,000 - $3,750 = $250)
  
  

Stipulations

• The tax credit for disabled people can only be claimed if you are retired on permanent or total disability. Use IRS schedule R to determine the amount available to you and claim it on your 1040. No other nonmedical items are specifically available to disabled people, but there are many standard items you can claim depending on your lifestyle and business activity. Some years, the government offers tax benefits to the disabled. Check for annual changes to claimed items and credits to determine if there is something new you can claim.
  
  

Other Considerations

• If your income is based on Supplemental Security payments, it isn’t taxed. You also qualify for the Earned Income Tax Credit (EITC) as a disabled person. It reduces the amount of money you need to pay in taxes; sometimes, people claiming the EITC actually get a refund from the credit. When someone else pays for an attendant to stay with you so that person can work, remind him of the dependent care credit he can claim on his taxes.
  
  

Tips

• Don’t forget to itemize all your medical expenses when deciding what you can claim. Salary for a required attendant, special food prescribed by a doctor, car lifts and hand controls for a person in a wheelchair and a guide dog are all considered medical costs. Your wheelchair or cart is also a medical expense. The more justifiable medical costs you claim, the less in taxes you’ll have to pay. Keep receipts for all services and products you plan to claim in case you are audited after filing your taxes.