Can I Claim My Disabled Spouse as a Dependent

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Tax Tips for Caring for a Disabled Spouse

Updated for Tax Twelvemonth 2022 • October sixteen, 2022 03:55 AM

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OVERVIEW

Caring for a disabled spouse can exist a financial strain, but y'all do have opportunities to reduce the burden. At that place are many taxation credits and other tax breaks available for disabled individuals and their caretakers. Amid the well-nigh common are the Tax Credit for the Elderly or Disabled, the Child or Dependent Care Credit, and the Medical Expenses tax deduction.

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Taxable and non-taxable disability

If your spouse is receiving disability payments, it's important for tax planning purposes to understand the source of the payments to assistance determine whether those benefits are taxable. Some examples of taxable and non-taxable benefits include:

Taxable

• Disability benefits from an employer, much like wages from that employer
• Benefits from a disability insurance policy that was paid for past an employer
• When the cost of a disability policy's premiums is carve up between an employer and an employee, any benefits attributable to the employer'due south portion of the premiums or paid using pre-taxation dollars
• Social Security disability income, depending on the amount of 'other' income an individual earns

Not-Taxable

• Benefits from a disability insurance policy that yous paid the premiums using after-tax money
• Veterans disability benefits

Credit for care expenses
If you pay someone to provide care for your disabled spouse, such equally a live-in nurse or adjutant, yous might be eligible for the taxation credit for Child and Dependent Care Credit. This is the same credit that working parents claim when they pay for child care. Though you cannot actually merits your spouse as a dependent on your tax render, you tin can care for him or her similar one to merits this credit if your state of affairs meets the following conditions:

• Your spouse is physically or mentally incapable of caring for himself or herself
• Your spouse lived with you for at least one-half of the year
• Yous paid someone to intendance for your spouse so that you could work or await for piece of work
• Y'all had earned income from an employer for services

The amount of your tax credit depends on several factors, including your total earned income, how much yous paid for care, and whether yous are also paying for kid care or intendance for another dependent. However, unlike many other tax breaks, this one doesn't have an upper income limit. Those with higher-income may go a smaller credit than those who earn a lower-income with the same expenses, only they still get something.

Disability tax credit

People who are unable to piece of work and are receiving disability payments might as well qualify for a tax interruption chosen the credit for the elderly and disabled. Your spouse could authorize for this credit if all of the post-obit use:

• Your spouse retired from his or her job on "permanent and total disability"
• Your spouse received taxable disability benefits from a former employer or from an insurance policy provided by that employer
• Your spouse was younger than the employer's mandatory retirement age (if it has one)
• Your spouse's income was not above sure limits

The term "permanent and total inability" is a disability that meets these criteria:

• Your spouse cannot piece of work because of his or her status
• A doctor has certified that your spouse's status will concluding for at least 12 months or is final

You claim this credit—and figure out how much your credit is—by filing Schedule R with your tax return. When you use TurboTax, nosotros ask you simple questions and fill up in the right forms for you lot.

Medical expenses deduction

Caring for someone with a disability often means significant ongoing costs, such as for medico visits, medication, therapy or mobility equipment, or modifications to your home, like a wheelchair ramp. Depending on your state of affairs, you might be able to claim a tax deduction for a portion of your family unit'due south medical expenses. Deductions reduce your income, and therefore the amount of tax you owe. The main rules for deducting medical expenses are as follows:

• Your costs must fit the IRS definition of qualifying medical expenses. The definition is fairly wide. IRS Publication 502 provides data on many common expenses.
• You can deduct only the portion of your expenses that exceed 7.v% of your income in 2021. If y'all have gross income of $50,000, for example, the kickoff $iii,750 of expenses ($50,000 10 7.5% = $3,750) would not exist deductible.
• You tin can't deduct any expenses that were reimbursed by an insurance company or someone else

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The higher up article is intended to provide generalized financial information designed to educate a broad segment of the public; information technology does not give personalized revenue enhancement, investment, legal, or other business and professional advice. Before taking whatsoever action, you should always seek the assistance of a professional person who knows your particular state of affairs for advice on taxes, your investments, the police, or any other business and professional matters that bear upon you and/or your business.

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Source: https://turbotax.intuit.com/tax-tips/disability/tax-tips-for-caring-for-a-disabled-spouse/L4RRkt80F