The year-end clock is ticking - it is a good time to get tax records in order. Businesses accommodating or hiring employees with disabilities may qualify for tax credits and deductions. For individuals with disabilities, there is information on taxes and tax preparation, as well as opportunities to contribute to a tax-advantaged savings account to fund disability expenses. This resource page includes more information about these different financial incentives.
Tax Incentives for Businesses
The Internal Revenue Service (IRS) provides information on Tax Benefits for Businesses Who Have Employees with Disabilities including tax credits and deductions that businesses may quality for that accommodate people with disabilities. These tax benefits include:
- Work Opportunity Tax Credit (WOTC) - A Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment that are inclusive of people with disabilities. It joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers. For more information on claiming this credit, go to the WOTC page.
- Disabled Access Credit - For small businesses that incur expenditures for the purpose of providing access to persons with disabilities. Refer to Form 8826, Disabled Access Credit PDF, for information about eligible expenditures.
- Architectural and Transportation Barrier Removal Deduction – This tax deduction encourages businesses of any size to remove architectural and transportation barriers to the mobility of persons with disabilities. Businesses may claim a deduction of up to $15,000 a year for qualified expenses for items that normally must be capitalized. To claim this deduction, businesses should follow the instructions for Barrier Removal Costs in IRS Publication 535, Business Expenses.
Tax Credits and Benefits for Individuals
Tax time is important for many people, but filing taxes can be confusing and stressful. This page from National Disability Institute’s Financial Resilience Center offers advice and resources, including free tax filing opportunities.
From the IRS Life Cycle Series, Living and Working with Disabilities, gain basic information about existing tax credits and benefits that may be available to qualifying taxpayers with disabilities, and parents of children with disabilities.