There isn't actually a special tax credit for the disabled on a federal
tax return, although a reasonable person would think that there might,
or should, be. That isn't a TurboTax decision; it's just a matter of
federal tax law.
Certainly, you can include, toward your
itemized deductions, any out-of-pocket medical expenses that may be a
result of your disability, subject to the usual limits (i.e., medical
expenses only "count" if they exceed 10% of your Adjusted Gross
Income). Even then, you can only itemize deductions if your total
deductions exceed the standard deduction for your filing status (i.e.,
Married Filing Jointly, Single, etc.).
This is why you won't
see a general question on the federal side of the TurboTax program
relating to a permanent and total disability. The answer simply won't
matter for federal tax purposes, as there is no federal tax credit, or
additional exemption, for it (although in a notable exception there is a
tax benefit(s) for those who are legally blind).
However, if you happen to live in a state
where there in an income tax, then the answer to the above may be
modified, as some states do indeed have a special tax benefit in their
tax laws for the disabled.
For example, the state of Oregon offers
an additional state-level personal exemption for those who are totally
and permanently disabled and have the records to prove it. As such, in
the Oregon module of the TurboTax program, you will actually see a
question that asks specifically about permanent disability. There are
other similar examples from other states as well.
For instance, if
you are a Kentucky resident, and you are receiving pension disability
retirement income, some (or all) of that pension income can be excluded
from state taxation, because of the fact that the recipient is totally
and permanently disabled. Once again, that is a state-level question
and would appear as a question in the state module (not federal).
In order to research this further, you would want to check your own state's tax instructions, or their tax preparation booklet, and perform a search for the word "disability." Additionally, where applicable, the TurboTax state module will ask you relevant questions about disability (including disability of a spouse) as well.
Thank you for asking this thoughtful question, and we wish you the best of luck going forward.
