This discussion highlights three tax credits that may be of interest to people with disabilities and those who care for people with disabilities.taxmap/pubs/p907-002.htm#en_us_publink10008649
If you pay someone to care for either your dependent under age 13 or your spouse or dependent who is not able to care for himself or herself, you may be able to get a credit of up to 35% of your expenses. To qualify, you must pay these expenses so you can work or look for work. The care must be provided for:
- Your qualifying child who is your dependent and who was under age 13 when the care was provided,
- Your spouse who was physically or mentally not able to care for himself or herself and lived with you for more than half the year, or
- A person who was physically or mentally not able to care for himself or herself, lived with you for more than half the year, and either:
- Was your dependent, or
- Would have been your dependent except that:
- He or she received gross income of $3,500 or more,
- He or she filed a joint return, or
- You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2008 return.
You can claim the credit on Form 1040 or 1040A. You figure the credit on Form 2441 (Form 1040) or Schedule 2 (Form 1040A).
For more information, see the instructions for Form 1040, line 48, or Form 1040A, line 29. Publication 503, Child and Dependent Care Expenses, contains more detailed information.taxmap/pubs/p907-002.htm#en_us_publink10008650
You may be able to claim this credit if you are 65 or older or if you are under 65 and you retired on permanent and total disability.
You can claim the credit on Form 1040 or 1040A. You figure the credit on Schedule R (Form 1040) or on Schedule 3 (Form 1040A).
For more information, see the instructions for Form 1040, line 49, or Form 1040A, line 30. Publication 524, Credit for the Elderly or the Disabled, contains more detailed information. taxmap/pubs/p907-002.htm#en_us_publink10008651
This credit is based on the amount of your earned income. You can get the credit if your adjusted gross income for 2008 is less than:
- $12,880 ($15,880 for married filing jointly) if you do not have a qualifying child,
- $33,995 ($36,995 for married filing jointly) if you have one qualifying child, or
- $38,646 ($41,646 for married filing jointly) if you have more than one qualifying child.
To figure the credit, use the worksheet in the instructions for Form 1040, 1040A, or 1040EZ. If you have a qualifying child, also complete Schedule EIC, Earned Income Credit, and attach it to your Form 1040 or 1040A. You cannot use Form 1040EZ if you have a qualifying child. taxmap/pubs/p907-002.htm#en_us_publink10008652
To be a qualifying child, your child must be under age 19 at the end of 2008, a full-time student under age 24 at the end of 2008, or permanently and totally disabled at any time during 2008, regardless of age. taxmap/pubs/p907-002.htm#en_us_publink10008653
If you are retired on disability, benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. However, payments you received from a disability insurance policy that you paid the premiums for are not earned income.taxmap/pubs/p907-002.htm#en_us_publink10008654
For more information, including all the requirements to claim the credit, see the instructions for Form 1040, line 64a; Form 1040A, line 40a; or Form 1040EZ, line 8a. Publication 596, Earned Income Credit (EIC), contains more detailed information.